The online education company Statistics.com segments its customers and prospects into three main categories: IT professionals (IT), statisticians (Stat), and other(Other). It also tracks, for each customer, the number of years since first contact (years). Consider the following customers; information about whether they have taken a course or not (the outcome to be predicted) is included:

Customer 1: Stat, 1 year, did not take course

Customer 2: Other, 1.1 year, took course.

Consider now the following new prospect: Prospect 1: IT, 1 year. Using the above information on the two customers and one prospect, create onedataset for all three with the categorical predictor variable transformed into 2 binaries,and a similar dataset with the categorical predictor variable transformed into 3 binaries.

IN the above question how to create onedataset for all three with the categorical predictor variable transformed into 2 binaries,and a similar dataset with the categorical predictor variable transformed into 3 binaries.??

And if possible can u explain me the logic on how to do it for different cases