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SAS handles missing values distinctively based on the data type of the variable. For numeric variables, SAS represents missing values with a period (.). For character variables, missing values are represented by a blank space. This handling is crucial for distinguishing between actual data entries and absent data, particularly in statistical calculations and data processing. Options B, C, and D incorrectly describe the representation of missing values in SAS, which does not use special characters like 'N', 'C', or '$' for this purpose. References:SAS documentation on handling missing data, SAS Institute.