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Coded Data is used to lessen the number of keystrokes used when inputting data. For example, entering 'F' rather than Female and 'M' rather than Male. This was the user is less likely to make a spelling mistake; they will save time and they will also save file storage space.

However the user may not understand the exact coding rules and therefore make mistakes in the first instance; it will take longer to train the user and incorrect entries in a database can cause untold number of errors or mistakes.

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