PR
PR
1. Abstract
2. Introduction
Introduction
Formulation of problems
Tools and technology used
3. Literature survey
Exicting technique
Bengining of this project
Improvement in this project
Why we use this model?
Advantages & advantages
Technique used
Random forest regressor (RFR)
4. Project design
5.References
Introduction
The portal employs Excel sheets and data to predict insurance costs
based on user input. Users are required to fill in six details: age, gender,
BMI, number of children, smoking status, and region of residence. After
inputting these details and clicking the predict button, the portal
generates an output page displaying the estimated insurance cost based
on the provided information.
Data Preparation: The first step is to collect and preprocess the data.
This includes cleaning the data, handling missing values, encoding
categorical variables, and scaling the features.
Feature Selection: Once the data is ready, the next step is to select the
most relevant features for the prediction task. This can be done using
techniques like correlation analysis or feature importance ranking.
Model Training: RFR can then be trained on the selected features and
the target variable (i.e., the insurance cost). During training, the
algorithm builds a set of decision trees using a random subset of the
features and data samples. The final prediction is the average of the
predictions from all the individual trees.
[5] "A Hybrid Approach for Medical Insurance Cost Prediction Using
Random Forest and Genetic Algorithm" by Kumar and Singh (2021): This
paper proposes a hybrid approach that combines Random Forest
Regression with Genetic Algorithm for medical insurance cost prediction.
The authors utilize feature selection techniques to identify the most
relevant variables and optimize the model's performance.
[6] "Predicting Medical Insurance Costs: A Deep Learning Approach" by Li
and Wang (2019): This study explores the application of deep learning
techniques, specifically a Deep Neural Network (DNN), in predicting
medical insurance costs. The authors compare the performance of the
DNN with traditional machine learning algorithms and analyze the
impact of different input variables on the prediction accuracy.
You must first specify the project's scope and goals before you can start
working on a medical insurance cost prediction project. This will entail
identifying the relevant parties and deciding which issues the prediction
model should address.
The next phase is to gather and prepare the data after the scope and
objectives have been established. This might entail gathering
information from insurance providers, medical facilities, clinics, and
other sources. The data needs to be cleansed, preprocessed, and
converted into an analysis-ready format.
After a model has been chosen, the data should be used to train and test
it. To do this, the data will be divided into training and testing sets, the
model will be fitted to the training data, and the model's performance
will be assessed using the testing data.
The model can be used to forecast future insurance costs once it has
been trained and validated. Stakeholders should be informed of the
findings in a way that is clear and understandable.
There are numerous actions that can be made to enhance a project that
predicts the cost of medical insurance:
Improve the quantity and quality of data: More data can be gathered
from a wider range of sources to increase the model's accuracy.
Furthermore, efforts can be made to guarantee that the data is accurate,
lacking few errors, and missing numbers.
Including more variables: The model can be made more complete and
accurate by integrating extra variables that are known to have an impact
on insurance prices, such as lifestyle habits or environmental conditions.
Review and revise the model on a regular basis: The model should be
assessed and modified as necessary to ensure that it stays accurate and
pertinent as new data becomes available or as stakeholders' needs
change.
Based on their personal features and medical histories, the model can be
used to estimate the cost of insurance for specific individuals. This can
assist people in making defensible decisions regarding their insurance
options and setting aside money properly.
Overall, a model for predicting the cost of medical insurance can assist
politicians, insurance providers, and individuals in making better
decisions about insurance costs and coverage. The model can provide
more precise and individualised predictions by employing a data- driven
methodology, assisting in ensuring that insurance premiums are
reasonable and realistic representations of the risk really connected with
each policyholder.
Accuracy: The model can provide predictions that are more accurate
than those made by conventional actuarial approaches by using
statistical and machine learning techniques.
Limited coverage: The model might not account for all the variables that
could affect insurance rates, such as modifications to health care laws or
environmental elements that might affect health.
Technique used
RFR has the benefit of handling both continuous and categorical data,
making it a flexible algorithm for predicting medical insurance costs. RFR
can also serve to lessen overfitting and increase the model's
generalizability, which can help to increase the precision of predictions
for brand-new individuals.
RFR is not a perfect option for predicting the cost of medical insurance,
it is important to remember that. The quality and quantity of the data
used to train the model, as well as the particular features and
hyperparameters included in the method, all affect how accurate it is.
Furthermore, RFR might not be able to account for all the variables that
can affect insurance rates, such as modifications to health-related
regulations or environmental aspects that can affect health. In order to
increase prediction accuracy, it is crucial to thoroughly assess the RFR
model's performance and take into account combining it with other
machine learning methods.project design .
Project design
INDEX PAGE
OUTPUT
OUTPUT
References