I'm assuming you actually used semicolons to end your statements, and you merged using a MERGE statement rather than a SET statement.
The basic problem is that you have a common variable, SUBJECT, in both data sets. There are a couple of ways to deal with that. To ignore all SUBJECT values in one data set, you could just drop it:
data final;
merge new (drop=subject in=a) new1;
by name class;
if a;
run;
I would assume you are merging by both variables, and not just by NAME.
The problem gets a little more complex if you need to compare the SUBJECT values in the two data sets, to see which you want to use.
Good luck.
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