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Investment risk calculator using k nearest neighbor

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Classification using K Nearest Neighbor

Classification model to predict the investment risk based on certain features. Features:

  • Salary
  • Number of dependents(max. 4)
  • EMI/RENT of house.
  • Savings

Formulas used: EMI/RENT= 0-50% of Salary [0-50% is randomly generated] SAVINGS= Salary- EMI/RENT- (Number of dependents * 0.10 * Salary) [considering that each dependent of family requires 10% of salary, we have considered maximum of 4 dependents]

Classification of different classes i.e Very low risk taker, Low risk taker, High risk taker, Very high risk taker --> If savings< 15000 - Very low or 10 --> If savings>15000 and savings<25000 - Low or 20 --> If savings>25000 and savings<40000 - High or 30 --> If savings>40000 - Very High or 40

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