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Introduction Healthcare is a crucial aspect of modern life, affecting the well-being and longevity of individuals worldwide. Access to affordable and high-quality healthcare is a major concern...

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Introduction
Healthcare is a crucial aspect of modern life, affecting the well-being and longevity of individuals
worldwide. Access to affordable and high-quality healthcare is a major concern for people in every
corner of the globe, and the cost of medical treatment can pose a significant financial burden,
especially for those who are not covered by insurance. While healthcare costs continue to rise,
insurance companies are tasked with finding ways to minimize risk and optimize costs to
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Answered 4 days After Mar 10, 2023

Solution

Mukesh answered on Mar 14 2023
43 Votes
Capstone Project – NBFC Loan Foreclosure PN2
Capstone Project – Heealthcare PN2
-    N I M E S H M A R F A T I A
Agenda
Discuss the feedback of the evaluation of last note submission.
Discuss Model Building
Discuss Model Tuning & Validation
Discuss on Model Interpretation
Discuss about how to draw Business Insights & Recommendations.
Assignment Notes 2 Evaluation
Review Parameters
1) Model building and interpretation.
Build various models
Test your predictive model against the test set using various appropriate performance metrics
Interpretation of the models
Review Points
10
2) Model Tuning
Ensemble modelling, wherever applicable
Any other model tuning measures(if applicable)
Interpretation of the most optimum and its implication on business
Total
10
20
Problem Statement, Scope & Business Objective:
Problem Statement:
The given dataset has multiple parameters which influence the health of the person and in turn impacts his / her insurance premium (Cost of Insurance);
The given scenario advises us to identify the parameters and provide weightage for each and determine the optimal insurance premium
for a person covering his/her risk
Goal & Objective –
The objective of this project is to build a model, using the health and habit parameters in the dataset and provide the optimum insurance
cost for an individual.
Optimal & cost effective premiums results in more market Share for the enterprise, more Profits and enhances Branding of the Business.
Limits the wealth erosion, better predictability and improves the standard of living
EDA: Create Data Set for your Model
Missing Values:
Imputation of more than 10-15% is not recommended. Remove such variables from dataset.
Continuous Variables:
Impute using Mean / Median
Categorical Variables:
New level can be created for Missing values. E.g. Unknown
Check for Co
elation:
Handle multicollinearity through variable transformation or derived variables.
Outlier Treatment:
Remove outlier as per domain understanding, impute using mean / median depending on variability.
Univariate Analysis Bivariate Analysis
Descriptive Statistics
EDA Insights
Dataset has 25000 rows / records and 24 Columns / variables
Data is collected between the age groups of 16 to 74 across Male & Female with occupation ranging from Student, Salaried and Business
Weight is ranging from 52kgs – 96kgs
“Alcohol intake” values ranging from No, Rare and Daily
“Doing Exercise” values ranging from Daily, Moderate and Extreme
Insurance Cost (Target Variable) is considered as Premium per Year; Insurance Cost is ranging from Rs 2468 to Rs 67870
Applicant_id column is i
elevant in the above context and hence can be ignored
Mean age = 44 and Max = 74
Mean BMI = 31 and Max = 100
16422 are Male (65%) and 8578 (35%) are Female
Models to consider for this project
Insurance Cost prediction is a linear regression problem( establishing a relationship between a dependent variable and one or more independent variables) , since we have to do continuous price prediction instead of logical operator type solution, so below is list of models that can be implemented.
Linear Regression – is one of the most common model for regression problems
Lasso The model is penalized for the sum of absolute values of the weights. Introduces a new hyperparameter, alpha, the coefficient to penalize weights.
Ridge It takes a step...
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