CWPartTwo032525
Joshua McDaniel
2025-03-27
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library(readr)
insurance <- read.csv("~/Desktop/March24-28 Work/insurance.csv", stringsAsFactors=TRUE)
str(insurance)## 'data.frame': 1338 obs. of 7 variables:
## $ age : int 19 18 28 33 32 31 46 37 37 60 ...
## $ sex : Factor w/ 2 levels "female","male": 1 2 2 2 2 1 1 1 2 1 ...
## $ bmi : num 27.9 33.8 33 22.7 28.9 ...
## $ children: int 0 1 3 0 0 0 1 3 2 0 ...
## $ smoker : Factor w/ 2 levels "no","yes": 2 1 1 1 1 1 1 1 1 1 ...
## $ region : Factor w/ 4 levels "northeast","northwest",..: 4 3 3 2 2 3 3 2 1 2 ...
## $ charges : num 16885 1726 4449 21984 3867 ...hist(insurance$charges)
summary(insurance)## age sex bmi children smoker
## Min. :18.00 female:662 Min. :15.96 Min. :0.000 no :1064
## 1st Qu.:27.00 male :676 1st Qu.:26.30 1st Qu.:0.000 yes: 274
## Median :39.00 Median :30.40 Median :1.000
## Mean :39.21 Mean :30.66 Mean :1.095
## 3rd Qu.:51.00 3rd Qu.:34.69 3rd Qu.:2.000
## Max. :64.00 Max. :53.13 Max. :5.000
## region charges
## northeast:324 Min. : 1122
## northwest:325 1st Qu.: 4740
## southeast:364 Median : 9382
## southwest:325 Mean :13270
## 3rd Qu.:16640
## Max. :63770cor(insurance[c("age", "bmi", "children", "charges")])## age bmi children charges
## age 1.0000000 0.1092719 0.04246900 0.29900819
## bmi 0.1092719 1.0000000 0.01275890 0.19834097
## children 0.0424690 0.0127589 1.00000000 0.06799823
## charges 0.2990082 0.1983410 0.06799823 1.00000000pairs(insurance[c("age", "bmi", "children", "charges")])
library(psych)
pairs.panels(insurance[c("age", "bmi", "children", "charges")])
ins_model <- lm(charges ~ age + children + bmi + sex + smoker + region, data = insurance)
ins_model <- lm(charges ~ ., data = insurance)
ins_model##
## Call:
## lm(formula = charges ~ ., data = insurance)
##
## Coefficients:
## (Intercept) age sexmale bmi
## -11938.5 256.9 -131.3 339.2
## children smokeryes regionnorthwest regionsoutheast
## 475.5 23848.5 -353.0 -1035.0
## regionsouthwest
## -960.1lm(formula = charges ~ ., data = insurance)##
## Call:
## lm(formula = charges ~ ., data = insurance)
##
## Coefficients:
## (Intercept) age sexmale bmi
## -11938.5 256.9 -131.3 339.2
## children smokeryes regionnorthwest regionsoutheast
## 475.5 23848.5 -353.0 -1035.0
## regionsouthwest
## -960.1summary(ins_model)##
## Call:
## lm(formula = charges ~ ., data = insurance)
##
## Residuals:
## Min 1Q Median 3Q Max
## -11304.9 -2848.1 -982.1 1393.9 29992.8
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) -11938.5 987.8 -12.086 < 2e-16 ***
## age 256.9 11.9 21.587 < 2e-16 ***
## sexmale -131.3 332.9 -0.394 0.693348
## bmi 339.2 28.6 11.860 < 2e-16 ***
## children 475.5 137.8 3.451 0.000577 ***
## smokeryes 23848.5 413.1 57.723 < 2e-16 ***
## regionnorthwest -353.0 476.3 -0.741 0.458769
## regionsoutheast -1035.0 478.7 -2.162 0.030782 *
## regionsouthwest -960.0 477.9 -2.009 0.044765 *
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 6062 on 1329 degrees of freedom
## Multiple R-squared: 0.7509, Adjusted R-squared: 0.7494
## F-statistic: 500.8 on 8 and 1329 DF, p-value: < 2.2e-16insurance$age2 <- insurance$age^2
insurance$bmi30 <- ifelse(insurance$bmi >= 30, 1, 0)
ins_model2 <- lm(charges ~ age + age2 + children + bmi + sex+ bmi30*smoker + region, data = insurance)
summary(ins_model2)##
## Call:
## lm(formula = charges ~ age + age2 + children + bmi + sex + bmi30 *
## smoker + region, data = insurance)
##
## Residuals:
## Min 1Q Median 3Q Max
## -17296.4 -1656.0 -1263.3 -722.1 24160.2
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 134.2509 1362.7511 0.099 0.921539
## age -32.6851 59.8242 -0.546 0.584915
## age2 3.7316 0.7463 5.000 6.50e-07 ***
## children 678.5612 105.8831 6.409 2.04e-10 ***
## bmi 120.0196 34.2660 3.503 0.000476 ***
## sexmale -496.8245 244.3659 -2.033 0.042240 *
## bmi30 -1000.1403 422.8402 -2.365 0.018159 *
## smokeryes 13404.6866 439.9491 30.469 < 2e-16 ***
## regionnorthwest -279.2038 349.2746 -0.799 0.424212
## regionsoutheast -828.5467 351.6352 -2.356 0.018604 *
## regionsouthwest -1222.6437 350.5285 -3.488 0.000503 ***
## bmi30:smokeryes 19810.7533 604.6567 32.764 < 2e-16 ***
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 4445 on 1326 degrees of freedom
## Multiple R-squared: 0.8664, Adjusted R-squared: 0.8653
## F-statistic: 781.7 on 11 and 1326 DF, p-value: < 2.2e-16insurance$pred <- predict(ins_model2, insurance)
cor(insurance$pred, insurance$charges)## [1] 0.9308031plot(insurance$pred, insurance$charges)
abline(a = 0, b = 1, col = "red", lwd = 3, lty = 2)
predict(ins_model2, data.frame(age = 30, age2 = 30^2, children = 2, bmi = 30, sex = "male", bmi30 = 1, smoker = "no", region = "northeast"))## 1
## 5972.859predict(ins_model2, data.frame(age = 30, age2 = 30^2, children = 2, bmi = 30, sex = "female", bmi30 = 1, smoker = "no", region = "northeast"))## 1
## 6469.683predict(ins_model2, data.frame(age = 30, age2 = 30^2, children = 0, bmi = 30, sex = "female", bmi30 = 1, smoker = "no", region = "northeast"))## 1
## 5112.5616469.683-5112.561## [1] 1357.122Including Plots
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