Health insurance or medical insurance is an agreement where an insurance company agrees to compensate the insured for the medical and surgical expenses incurred during the policy tenure. The medical expenses may incur if the insured falls ill, or meets an accident that leads to hospitalisation of the insured. To be eligible to avail coverage benefits under the policy, the policyholder is required to pay a specific amount periodically, known as premium. Health Insurance premium is decided by an insurance company and policyholders are required to pay the same on a monthly, quarterly, half-yearly, or yearly basis, without any lapse, to avoid losing the renewal benefits.
Data analysis is defined as a process of cleaning, transforming, and modeling data to discover useful information for business decision-making. The purpose of Data Analysis is to extract useful information from data and taking the decision based upon the data analysis.
PROBLEM STATEMENT: In this project, we used visualizations and statistical hypothesis testing to evaluate and examine a dataset for medical costs in Health Insurance in the United States, in order to draw significant insights and make some statistical-based inferences.
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Smoking significantly influences the charged amounts: Smokers are charged more than non-smokers.
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The BMI is evenly distributed across males and females.
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The amount of male smokers is higher than female smokers.
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There is no difference in the amount charged for both genders.
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Smoking habits of people of different regions are similar.
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The BMI is directly positively correlated to the amounts charged.