• We have looked at multiple datasets where the response variabel in the data is Insurance Charges (Charges).

• The histograms above indicate why we have used a natural log transformation to create a different response for our models, ln_Charges.

• Answer each question below in one concise sentence with correct grammar and punctuation (two sentences total):

1. Why do we used ln_Charges (natural log of insurance charges) in these models?

2. How do we back-transform model estimates to estimate client charges in dollars when ln_Charges is our model response?

60 30 - 40 20 - Frequency Frequency 20 10- 0 20000 40000 60000 8 9 10 11 Insurance Charges Natural Log of Insurance Charges