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In this Power Query tutorial, the presenter demonstrates how to replace values in a column based on specific conditions. The dataset focuses on restaurants and includes a column indicating whether smoking is allowed. In light of regulations in Tomato Malabas, where smoking is no longer permitted, the goal is to change instances of "yes" to "no". The tutorial outlines a method to create a helper column that checks if the condition is met. If the condition is satisfied, the value is replaced; if not, the original value remains unchanged. This process helps effectively update the dataset according to the new smoking regulations.