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Insurance Charge Prediction

Project Overview

This project aims to predict insurace charges based on a set of features, such as age, gender, BMI and other factors. The goal is to create a machine learning model that can accurately estimate the charges for a given individual based on their profile.

Dataset

The dataset used for this project is insurance.csv. It includes the following featues:

  • age: Age of the individual
  • sex: Gender
  • BMI: Body Mass Index
  • children: Number of children
  • smoker: Whether the individual is a smoker
  • region: The region where the individual resides
  • charges: Medical insurance charges (target variable)

Data Preprocessing

The preprocessing pipeline includes the following steps:

  • Handling duplicated rows
  • Handling missing values
  • Correcting datatype
  • Encoding categorical variables (sex, smoker, region)
  • Feature scaling (StandardScaler for age, bmi, charges)

Modeling

Linear Regression

Evaluation

  • R-squared (R²)

Validation

  • Model was validated with a new dataset called validation_dataset.csv

The results

The mean R-squared scores across 5 folds is 0.75. This suggests a good level of predictive power, but may be further improved with hyperparameter tuning, feature engineering and exploring different model architectures.

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