Currently I have a polyline shapefile that has decimal degree coordinate (Geographic Coordinate System), however I am going to change it to UTM (Projected Coordinate System) using ArcMap.
Does ArcMap has a tool to convert this coordinate system?
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You can use the "project tool". This will reproject your dataset into another coordinate system. This tool will create a new version of the dataset into the required CRS.
If you just need to change the dataframes reference system, you can do this by right-clicking the dataframe > properties> coordinate system. This will change the dataframe only. Please see this link for more information.