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How to do it...

Income is a numeric variable, and you may want to create a categorical variable from it by creating bins. Suppose you want to label incomes of \$10,000 or below as Low, incomes between \$10,000 and \$31,000 as Medium, and the rest as High. We can do the following:

1. Create a vector of break points:
`> b <- c(-Inf, 10000, 31000, Inf) `
1. Create a vector of names for break points:
`> names <- c("Low", "Medium", "High") `
1. Cut the vector using the break points:
`> students\$Income.cat <- cut(students\$Income, breaks = b, labels = names) > students     Age State Gender Height Income Income.cat 1   23    NJ      F     61   5000        Low 2   13    NY      M     55   1000        Low 3   36    NJ      M     66   3000        Low 4   31    VA      F     64   4000        Low 5   58    NY      F     70  30000     Medium 6   29    TX      F     63  10000        Low 7 39 NJ M ...`

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