Model of the Cost Data from Medical Insurance with High-dimension Covariates
Wei-Wei Wang · Caijing luncong · 2013
Model of medical cost is very important for the insurers,and the cost data might include some high-dimension covariates,which may be useful to predict the future cost.However,the existing statistical methods may not be effective.Hence,in this paper,a cost model is proposed to model the data with high-dimension covariates,and the two-step method is applied to get the estimation.The first step to obtain the central dimension reduction subspace and the structural dimension,and then,local regression method is employed to get an estimate of the completely unknown regression curve.Some simulations and a real data analysis are given as well to assess the proposed model and methods in this paper.