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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:
 
 
Recoded Groups:
 
 
In this case, different levels of education are grouped into broader categories.