Monday, December 2, 2013

An Exercsie on Classification


An Insurance organization wants to classify it’s customers based on following parameters:
Annual Income -- < Rs. 3 lakhs; Rs. 3 lakhs to < Rs. 8 lakhs; Rs. 8 lakhs to <Rs 20 lakhs; Rs. 20 lakhs and above.
Premium paid in current policies -- < Rs. 5 K; Rs. 5K to < 8 K; 8 K to < 15 K; 15 K and above.
Past Claim – Yes; No.
A customer is classified as an Excellent customer if his annual income is Rs. 3 lakhs or more, premium paid is Rs. 8 K or more and has no past claim.
A customer is classified as a Good customer if (i) he has past claim but his annual income is greater than equal to Rs. 8 lakhs and has paid premium of Rs. 15 K or above; (ii) he has no past claim and premium paid by him is Rs 8 K or above.
In all other cases, a customer is classified as a valuable customer.
Check the consistency of this system and suggest an algorithm to do such classification.

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