The accompanying data set contains two variables, x₁ and x₂. 

a. The variable x₁ contains three categories ranging from “Low” to “High.” Convert the category names into category scores (i.e., 1 = “Low”, 2 = “Medium”, and 3 = “High”). How many observations have a category score of 3? 

b. Reduce the number of categories in x₂ by combining the three least-frequent categories. Name the new category “Other”. How many observations are in the “Other” category? 

c. Convert the new x₂ into dummy variables. How many dummy variables should be created? Create the dummy variables using the “Other” category as the reference category.