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Business Problem: We all know that Health care is very important domain in the market. It is directly linked with the life of the individual;
Business Problem:
We all know that Health care is very important domain in the market. It is directly linked with the life of the individual; hence we have to be always be proactive in this particular domain. Money plays a major role in this domain, because sometime treatment becomes super costly and if any individual is not covered under the insurance then it will become a pretty tough financial situation for that individual. The companies in the medical insurance also want to reduce their risk by optimizing the insurance cost, because we all know a healthy body is in the hand of the individual only. If individual eat healthy and do proper exercise the chance of getting ill is drastically reduced.
Goal & Objective: The objective of this exercise is to build a model, using data that provide the optimum insurance cost for an individual. You have to use the health and habit related parameters for the estimated cost of insurance
Target variable: insurancecost
Using the attached Data set please perform the below using python and provide me with the results and interpretations.
Problem Understanding
a Defining problem statement b Need of the studyproject c Understanding businesssocial opportunity Problem Understanding
Data Report
a Understanding how data was collected in terms of time, frequency and methodology b Visual inspection of data rows columns, descriptive details c Understanding of attributes variable info, renaming if required
Exploratory Data Analysis
a Univariate analysis distribution and spread for every continuous attribute, distribution of data in categories for categorical ones b Bivariate analysis relationship between different variables correlations a Removal of unwanted variables if applicable b Missing Value treatment if applicable d Outlier treatment if required e Variable transformation if applicable f Addition of new variables if required
Business insights from EDA
a Is the data unbalanced? If so what can be done? Please explain in the context of the business b Any business insights using clustering if applicable c Any other business insights
Model building and interpretation
a Build various models You can choose to build models for either or all descriptive, predictive or prescriptive purposes
b Test your predictive model against the test set using various appropriate performance metrics
c Interpretation of the models
Model Tuning and business implication
a Ensemble modelling if necessary
b Any other model tuning measures if applicable
c Interpretation of the most optimum model and its implication on the business
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