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Matthew Pierce, a software engineer, demonstrates how to create drop-down lists with multiple options in Excel. He shows two methods - one for creating a drop-down list with options on the same page and another for using options from a list on a different page. He uses the example of ice cream scoops (single, double, triple) and flavors (strawberry, vanilla, chocolate). To create a drop-down list on the same page, select the cell, go to data validation, and adjust the settings.