Converting continuous numeric data into categorical data is often necessary for segmenting large datasets into manageable categories. For example, numeric scores or measurements can be recoded into categorical groups such as "Low," "Medium," or "High" to simplify analysis.
Original Question: What is your monthly income?
Possible Answers:
Any numeric value (e.g., $2,500, $4,000, $6,000)
Recoded Categories:
Low Income: Less than $3,000
Middle Income: $3,000 - $5,000
High Income: More than $5,000
Here, numeric income data is converted into categorical income brackets.
