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: insurance$\_$cost

Using the attached Data set please perform the below using python and provide me with the results and interpretations.

$1.$ Problem Understanding

a$)$ Defining problem statement b$)$ Need of the study$/$project c$)$ Understanding business$/$social opportunity $1.$ Problem Understanding

$2.$ 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$)$

$3.$ 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$)$

$4.$ 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

$5.$ 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 model$($s$)$

$6.$ 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