Final answer:
The student should use Python's split() method with the dollar sign as the delimiter on the given string to create the desired list.
Step-by-step explanation:
To split the string 'values' into a list where each word is a separate element, we need to use the split() method in Python, specifying the delimiter that separates each word. In this case, the delimiter is a dollar sign ('$'). Here's how the code looks:
values = 'one$two$three$four'
list_of_values = values.split('$')
The variable list_of_values will now hold the list ['one', 'two', 'three', 'four'].