Which statement correctly defines the purpose of the DATALINES statement?

The DATALINES statement is specifically designed to allow raw data to be included directly within a SAS program. When you use DATALINES, you can enter the data in a form that SAS can process, without needing to reference an external file. This is particularly useful for small datasets or when you want to quickly demonstrate or test code without the overhead of creating a separate data file.

The statement instructs SAS to read data that follows it until it encounters a semicolon on a line by itself, marking the end of the data entry. This embedded data can be accessed and manipulated just like data that is read from external sources, making it a flexible tool for programmers.

The other options highlight concepts that are distinct from the role of the DATALINES statement. For instance, reading data from external sources typically involves the INFILE statement, while the structure of a dataset is defined through a DATA step and the incorporation of data attributes. Output formats for reports are managed through procedures and formatting options rather than the DATALINES statement. Thus, focusing on the purpose of DATALINES clearly points to its function in allowing raw data to be placed within a SAS program as the correct statement.