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The second set of project notes must include the model building aspect and be aligned to the analytical business problem the Capstone Project addresses

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The second set of project notes must include the model building aspect and be aligned to the analytical business problem the Capstone Project addresses. It should also include the rationale behind using/building one particular model (if applicable). The notes should be brief and succinct containing the depiction of the results for the models built aligned with the objective of the project.

Below are the guidelines for the Project Notes-II:

1). Model building and interpretation
a. Build various models (You can choose to build models for either or all of descriptive, predictive or prescriptive purposes)
b. Test your predictive model against the test set using various appropriate performance metrics
c.Interpretation of the model(s)

2). Model Tuning and business implication
a. Ensemble modelling (if necessary)
b. Any other model tuning measures (if applicable)
c. Interpretation of the most optimum model and its implication on the business

For any project notes, one is expected to submit 2 files as their solution:
1)Answer Report or Business Report
2)Jupyter Notebook. Both the files are mandatory to be submitted.

Your project notes submission will be graded based on your Business Report. Wherever required, the evaluator shall look into your Jupyter Notebook (Python codes) for reference.

Business Problem:

We all know that Health care is very important domain in the market. It is directly linked with the life of the individual; hence we have to be always be proactive in this particular domain. Money plays a major role in this domain, because sometime treatment becomes super costly and if any individual is not covered under the insurance then it will become a pretty tough financial situation for that individual. The companies in the medical insurance also want to reduce their risk by optimizing the insurance cost, because we all know a healthy body is in the hand of the individual only. If individual eat healthy and do proper exercise the chance of getting ill is drastically reduced.

Goal & Objective: The objective of this exercise is to build a model, using data that provide the optimum insurance cost for an individual. You have to use the health and habit related parameters for the estimated cost of insurance

File: Data.csv

Target variable: insurance_cost Data dictionary: