Creating New Categorical Groups from Categorical Data
Sometimes it's useful to recode categorical data by creating new, broader groups. For example, survey questions about education levels could be recoded into categories such as "Low Education," "Medium Education," and "High Education."
Original Question: What is your highest level of education?
Possible Answers:
No formal education
Primary education
Secondary education
Bachelor's degree
Master's degree
Doctorate
Recoded Groups:
Low Education: No formal education, Primary education
Medium Education: Secondary education, Bachelor's degree
High Education: Master's degree, Doctorate
In this case, different levels of education are grouped into broader categories.