Income data is often collected in numeric form, but it can be useful to recode it into categories such as low, middle, or high-income groups. This transformation makes the analysis more interpretable, especially when looking for trends across different income brackets.
Original Question: What is your annual income?
Possible Answers:
Any numeric value (e.g., $25,000, $50,000, $75,000)
Recoded Ranges:
Low Income: Less than $30,000
Middle Income: $30,000 - $60,000
High Income: More than $60,000
This example shows how to categorize numeric income data into different income levels.
