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Most constructive induction researchers focus only on new boolean attributes. This paper reports a new constructive induction algorithm, called X-of-N, that constructs new nominal attributes in the form of X-of-N representations An X-of-N is a Bet containing one or more attribute-value pairs. For a given instance, its value corresponds to the number of its attribute-value pairs that are true. The promising preliminary experimental results, on both artificial and real-world domains, show that constructing new nominal attributes in the form of X-of-N representations can significantly improve the performance of selective induction in terms of both higher prediction accuracy and lower theory complexity.