Understanding the Concept:
Analog vs Digital signals.
Step 1: Evaluate statements.
• Analog → continuous → correct
• Digital → discrete → correct
• Analog cannot use binary → correct
• Digital processed by logic gates → correct
Step 2: Check incorrect.
Digital systems fundamentally use binary (0 and 1), not decimal directly.
Step 3: Final Answer.
\[
\boxed{(E)}
\]