1
Descriptive Statistics
Summary Statistics for Insurance Holder /Insurance customer:
1.1
Hello
2
Histogram of Age distribution among people paying for Medical Insurance
Amount of Insurance Holder
2.1
Demographic distribution of Insurance Holders
Age distribution among medical insurance customer
300
250
200
150
100
50
0
18-24
25-31
32-38
39-45
46-52
53-59
60-66
Age by Category
2.2
Table of gender distribution among insurance user:
Gender
Male
Female
Grand Total
Frequency
Percentage
676
662
1338
50.52%
49.48%
100.00%
, 676 individuals identify as male, constituting 50.52% of the total population, while 662
individuals identify as female, representing 49.48% of the total. The grand total of 1338 reflects
the entirety of the surveyed population, with a clear division of 50.52% males and 49.48%
females.
2.3
Table and Pie-Chart of non-smoking and smoking insurance holder (Trends):
Smoking
No
Yes
Grand Total
Frequency
Percentage
1064
274
1338
79.52%
20.48%
100.00%
1
Count of Smoker (Yes/No)
Yes
20%
No
80%
The data presented offers a clear snapshot of smoking habits within a sample of 1338
individuals. Among this group, a significant majority, representing 79.52%, are non-smokers,
totaling 1064 individuals. In contrast, 20.48% of the sample, consisting of 274 individuals,
reported being smokers.
3
3.1
High Medical Cost reason
Relationship between Smoking and Medical cost
Smoking
Medical Cost
Frequency
Percentage
No
$
8,974,061.47
1064
50.54%
Yes
$
8,781,763.52
274
49.46%
Grand Total
$ 17,755,824.99
1338
100.00%
The data provided gives us a comprehensive view of the relationship between smoking and
its associated medical costs within a sample of 1338 individuals. Among this group, 50.54%
(1064 individuals) are non-smokers, incurring a total medical cost of $8,974,061.47, while the
2
3.2
3.2.1
Relationship between High BMI and Medical cost
Histogram and Table of BMI by Category and Average Medical Cost of Insurance
Holder
Avergage Medical Cost for BMI by Category
$20 000
Average Medical Cost
$18 000
$16 000
$14 000
$12 000
$10 000
$8 000
$6 000
$4 000
$2 000
$15-20
20-25
25-30
30-35
35-40
40-45
45-50
50-55
Body Mass Index (BMI) by Category
BMI
Average Medical Cost
Frequency
Percentage
15-20
$
8,838.56
41
2.04%
20-25
$
10,572.37
204
12.15%
25-30
$
10,987.51
386
23.89%
30-35
$
14,419.67
391
31.75%
35-40
$
17,022.26
225
21.57%
40-45
$
16,569.60
71
6.63%
45-50
$
17,815.04
17
1.71%
50-55
$
16,034.31
3
0.27%
Grand Total
$
13,270.42
1338
100.00%
The group with BMI ranging from 30-35, comprising 31.75% of the sample (391 individuals),
incurs the highest average medical cost of $14,419.67, emphasizing the financial impact of
obesity-related health issues. In contrast, individuals with BMI in the 15-20 range, while
representing only 2.04% of the sample (41 individuals), have the lowest average medical cost
of $8,838.56. The Grand Total of $13,270.42 reflects the overall average medical cost across
all BMI categories.
3.3
Relationship between Age by Category and Average Medical Cost
3
Age
Average Medical Cost
18-24
$
9,011.34
278
25-31
$
10,065.69
193
32-38
$
11,818.41
178
39-45
$
13,778.32
189
46-52
$
15,575.13
202
53-59
$
16,476.98
184
60-66
$
21,248.02
114
Grand Total
$
13,270.42
1338
Frequency
The age group of 60-66, constituting 114 individuals, incurs the highest average medical cost
of $21,248.02, reflecting the increased healthcare needs associated with older age. In contrast,
individuals aged 18-24, totaling 278 in number, have the lowest average medical cost at
$9,011.34. The Grand Total of $13,270.42 represents the overall average medical cost across
all age groups.
4
Conclusion
In the univariate data analysis of the insurance holder and customer dataset, several key
insights can be drawn. First, the descriptive statistics reveal that the average age of insurees
is 39.2 years, with a wide age range from 18 to 64 years, suggesting a relatively normal
distribution of age within the dataset. Second, the demographic distribution of insurance
holders showcases a diverse age range, with the largest cohort falling in the 18-24 age group,
followed closely by the 46-52 age group, demonstrating a comprehensive representation of
individuals across multiple age categories. Gender distribution is almost evenly split, with
50.52% males and 49.48% females. Moreover, the data underscores the significant influence
of smoking on healthcare expenditures, with smokers contributing to half of the total medical
costs, despite comprising only one-fifth (274 individuals) of the overall sample size compared
to 1064 non-smokers. These figures underscore the significant financial implications
associated with smoking. The relationship between BMI and medical costs reveals a clear
correlation, with higher BMI categories incurring greater medical expenses. Finally, the
analysis of age by category and average medical cost shows a consistent increase in
healthcare expenses as age advances, emphasizing the greater healthcare needs associated
with older age. In conclusion, this data analysis provides valuable insights for insurance
providers in understanding the demographic distribution, smoking habits, and the impact of
age and BMI on medical costs within their customer base, enabling them to make informed
decisions in policy pricing and healthcare management.
4
5
Recommendations
The univariate data analysis of the insurance holder and customer dataset offers significant
insights into the demographic and health-related factors impacting insurance costs. To further
enhance our understanding and inform decision-making, several recommendations for future
studies can be made:
-
Firstly, it would be valuable to conduct a longitudinal study to track changes in
healthcare costs and smoking habits over time. This would provide insights into the
long-term impact of smoking on healthcare expenditures and the potential
effectiveness of smoking cessation programs.
-
Additionally, exploring the specific health conditions associated with higher BMI
categories and their respective costs could offer a more detailed understanding of the
relationship between obesity and medical expenses.
-
Furthermore, a deeper investigation into the age-related healthcare needs, including
the prevalence of chronic conditions and the utilization of healthcare services among
different age groups, would be beneficial for insurance providers to develop agespecific policy offerings.
-
Lastly, considering lifestyle factors beyond smoking, such as physical activity and diet,
and their influence on medical costs would provide a more holistic view of healthrelated factors.
5