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Matthew Pearce, a software engineer, demonstrates how to create drop-down lists with multiple options in Excel. He presents two methods: one using options located on the same page and another utilizing options from a different page. For the first method, he uses ice cream scoop sizes (single, double, triple) as an example. He instructs to select the desired cell for the drop-down list, then navigate to the Data Validation option, ensuring the settings are properly configured. The tutorial aims to guide users through the step-by-step process of setting up these lists in Excel.