Medical Insurance Charges (Answers)

1 Overview

This notebook uses a real healthcare-related dataset on medical insurance charges.

You will be tasked to conduct analysis on the medical insurance charges.

1.1 Your Task

1. Import and load a dataset in R.
2. Identify outcome and predictor variables.
3. Fit simple and multiple linear regression models & carry out forward selection based on p-values.
4. Interpret coefficients, p-values, and model fit statistics.
5. Make predictions from a fitted regression model.

2 Load the data

2.1 Question 1:

Go to the following URL (https://www.kaggle.com/datasets/mirichoi0218/insurance/data)

Download the data in csv and print out the first few rows of the data.

check that you have the data set as shown below.

df <- read.csv("~/Documents/Projects/Regression Practice/insurance.csv")
head(df)

  age    sex    bmi children smoker    region   charges
1  19 female 27.900        0    yes southwest 16884.924
2  18   male 33.770        1     no southeast  1725.552
3  28   male 33.000        3     no southeast  4449.462
4  33   male 22.705        0     no northwest 21984.471
5  32   male 28.880        0     no northwest  3866.855
6  31 female 25.740        0     no southeast  3756.622