Pseudo continuous data as the name suggests is pseudo continuous i.e. it is actually not continuous (or discrete) but it considered as continuous.
Advantages
1. More powerful analytical tools can be used on the data
2. Continuous data tends to follow normal distribution and if it does, we could apply its properties
3. As a Lean Six Sigma practitioner, you need to remember less number of tools :)
Dis-advantages
1. Conversion of statistical solution to practical output have a chance of going wrong as the properties of discrete and continuous data are different
2. Misinterpretation and misuse of tools and techniques
Guidelines to consider discrete data as continuous
1. There are many (read as uncountable) possible values of discrete data. This is one reason why percentage is usually considered as pseudo continuous.
Considering discrete data as pseudo continuous is a powerful method that can be used aby LSS experts in data analysis. However discretion is required by the project leader in using this method.