Choose List Criteria

Set values

1. Somewhere in the workbook, create three named ranges:
   
   1. Type (elements of this named range should be Sedans, SUVs)
      
   2. Sedans (elements of this named range should be Toyota Camry, Nissan Altima, Mazda 6)
      
   3. SUVs (elements of this named range should be Toyota RAV4, Ford Escape, Jeep Liberty)
      
      
2. Select A1:A10, go to Data>Validation select List. Under source, type:
   =Type
   
   
3. Select B1:B10, go to Data>Validation select List. Under source, type:
   =INDIRECT(A1)

Choose a vehicle type from the selection that appears in the A column, and the choices in B will be limited to the entries in the appropriate list.

To create a named range, select the list: Hit Ctrl+F3. Enter the name and hit OK (or Enter), or Type the name in the Name Box on the left side of the Formula bar and hit the Enter key, or Go to Insert>Name. If the list selected includes a label/title, choose Create, otherwise choose Define, type the name and hit Enter).

Also Contextures.com:
Data Validation -Create Dependent Lists



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