Just another 2 cents worth:
As one example of where NULL might make sense would be something like as TestScore field in a table. In this case, NULL would indicate that a Student has not yet taken the test and thus a Score would be undefined. When using NULLs like this, aggregate functions like COUNT() and SUM() and AVERAGE() would work correctly whereas, if a value such as -1 was use, they would have some problems.
Realize that (for strings at least) NULL and '' as symatically different -- use NULLable fields only when the 'no value' condition makes sense.



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