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In this tutorial, software engineer Matthew Pearce demonstrates how to create drop-down lists in Excel with multiple options. He outlines two methods: one for creating a drop-down list using options on the same page and another using options from a separate page. Using an example of ice cream scoops (single, double, and triple) and flavors (strawberry, vanilla, chocolate), he guides viewers through the process. For the first method, viewers select the desired cell for the drop-down list, navigate to the data validation feature, and adjust the settings accordingly to incorporate their options.