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This video tutorial demonstrates how to recode a scale variable into an ordinal variable with categories. The variable used in the example is H, and the process involves using the recode option under the transform menu. The original variable is kept, and a new variable called "age-groups" is created. Specific ranges are defined for groupings, such as 25 and younger for group 1 and 26 through 35 for group 2. Each range is assigned a corresponding new value.