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In this tutorial, software engineer Matthew Pearce demonstrates how to create drop-down lists in Excel with multiple options. He presents two methods: the first involves creating a drop-down list with options from the same page, while the second utilizes options from a list on a different page. Using an example of ice cream scoops (single, double, triple) with flavors (strawberry, vanilla, chocolate), he begins by selecting a cell for the drop-down list. He then navigates to the data validation settings to configure the list. This step-by-step approach helps users easily implement functional drop-down lists in their Excel workbooks.