The accompanying data set contains three variables, x1, x2, and x3. Open Excel Data File to complete the Exercise 2-53 a. The variable x1 contains 3 categories: S, M, and L. Convert the category names into category scores (i.e. S = 1, M = 2, and L = 3). What is the average score for the variable x1? (Round your answer to two decimal places.)

b. Transform x2 into an appropriate number of dummy variables. How many dummy variables should be created?

b. c. The variable x3 contains four categories: A, B, C, and D. Reduce the number of categories by combining the two least frequent categories into a new category E. How many observations are in the E category? Note: need excel formula

Note: Excel formula

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