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In this tutorial, Ted demonstrates how to edit the contents of a cell in Excel using a sample spreadsheet with fictional characters. He shows how to change the occupation of a person named Guido, who was a fisherman in Alaska but is now a dock worker. To edit, Ted advises users to double-click on the cell they wish to change, which activates the formula bar. Users can then edit the cell directly or use the formula bar for text editing. After making the necessary changes, hitting return updates the cell with the new information.