Blanks appearing in source data not to appear in Data validation list

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Assume a column of data with blanks appearing in a few random cells.  One may want to use this range of cells for creating a Validation drop down in a specified cell.  After creating the validation drop down, the blanks from the source data range would obviously show up in the drop down as well.

The task is to show only the entries in the validation drop down (without the blanks).  The question and instructions are very clearly mentioned in this workbook.

Depending upon the version of MS Excel which you are using, there could be two ways to solve this problem

Solution for MS Excel 2010 and higher versions

If you are using the Power Query add-in, then a few simple steps (no formulas at all) can solve this problem.  The result will be dynamic and refreshable (just as in a Pivot Table)

You may watch a short video of my solution here

Solution for all versions of MS Excel

While this solution works for all versions of MS Excel, it uses an array formula (Ctrl+Shift+Enter).  Array formulas, if used extensively in the workbook, adversely effect the system’s performance.

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