Prediction Of Medical Insurance Cost Through Linear Regression Model

Abstract

Nowadays health care problem has become an increasingly important topic, which means that more and more people choose to pay for health care insurance. This article is mainly about constructing a model which is used to predict a person’s health care insurance cost as a reason that it is usually hard to find the total amount of cost from people on health care insurance area. The author found a data set about health care insurance cost and used r to analyze it. In the end, 2 linear regression models which seem to fit the data set are built to predict the cost of heal care insurance. After the comparison of these 2 models, a better one is chosen. The model has also been checked to see if it is accurate and proper. The particular significance of this study is that it builds a model which can predict hard-to-collect data from some data which is easy to collect like BMI and age.