The correct answer is C. To create the NODONATIONS dataset, which includes only the employees

who did not make any donations, a merge operation is used with a conditional statement to filter out

those records. The syntax if inE=1 and inD=0; ensures that the merged dataset includes only the

observations from the EMPLOYEES dataset that do not have a corresponding observation in the

DONATIONS dataset. This is achieved using data step processing with the in= option to create

temporary variables that indicate whether the data is coming from the input dataset.

In the other options:

A is incorrect because inE=0 and inD=0 will never be true after a merge since at least one of the

datasets must contribute to the merged observation.

B lacks the necessary conditional logic to filter out employees with donations.

D is incorrect because if inE=1 and inD=1; would actually select employees who made donations, the

opposite of what we want.

Reference:

SAS documentation on merging data sets using the DATA step.