Your first question when you do basic summary statistics on categorical variables is how many and what percentages of observations fall into each category. In our case example, what number (frequency) and percentage of the customers have freeware versus premium licenses, or are small, medium or big in size? To see this example of categorical variable frequencies for our data, open and run the file “Code07c Categorical frequency” which is based on the dataset “Data02_Cleaned.” You should get the output from Figure 15.1 Example of frequency analysis of categorical data in SAS.

As you can see from Figure 15.1 Example of frequency analysis of categorical data in SAS, if you have categorical data you can really only calculate how many of each category there are. The central data point is then the one which occurs most often (e.g. the 43.01% of Big firms). This most common response is the “mode.”