The Mahalanobis model (or Feldman–Mahalanobis model) is a two-sector economic development model developed in the 1950s by Prasanta Chandra Mahalanobis, emphasizing rapid industrialization through heavy investment in capital goods (machinery, infrastructure) to drive long-term consumption growth. It was the foundation for India’s Second Five-Year Plan, prioritizing structural transformation over short-term consumption.
The Mahalanobis model has been constructed in terms of Keynesian aggregates; national income, investment, savings, and consumption, Two sectors are considered in the model; production goods producing sector (K-sector) and consumption goods producing sector (C-sector).
Mahalanobis became essentially the key economist of India's Second Five Year Plan, becoming subject to much of India's most dramatic economic debates. The essence of the model is a shift in the pattern of industrial investment towards building up a domestic consumption goods sector.
Mahalanobis distance is a metric that measures how far a point is from the center of a multivariate distribution, accounting for the covariance between variables. This makes it effective for detecting multivariate outliers and analyzing multivariate data.
Mahalanobis Plan was India's second five-year plan (1956-61) proposed by Professor Prasanta Chandra Mahalanobis. This plan gave priority to investment goods, as they were crucial for the further economic growth of India. The plan explores the allocation of investment between the different sectors of the economy.
These are (1) an investment goods sector (I) and (2) the consumer goods and services sector are divided into three further sectors: a sector producing consumer goods in a factory (C1); the sector producing consumer goods in small and household industries (C2); and the services sector (including health and education) ( ...
MD was firstly proposed by P. C. Mahalanobis as covariance distance which considered the correlation of data set with scale independence. Furthermore, MD is an effective tool to determine the similarity of unknown samples to a collection of known samples.
What is the difference between PCA and Mahalanobis distance?
Mahalanobis distance is the scaled Euclidean distance when the covariance matrix is diagonal. In PCA the covariance matrix between components is diagonal. The scaled Euclidean distance is the Euclidean distance where the variables were scaled by their standard deviations.
Why is Mahalanobis called the father of statistics?
His innovative use of randomization in selecting units for sampling remains a cornerstone of modern statistical practices. He is also known for developing the Mahalanobis D-square, a statistical measure of distance between two groups of objects, which is widely used in various scientific and industrial domains.
He made pioneering studies in anthropometry in India. He founded the Indian Statistical Institute, and contributed to the design of large-scale sample surveys. For his contributions, Mahalanobis has been considered the father of statistics in India.
Four key contributors to economic growth are increases in capital goods (such as machinery and infrastructure), a growing labor force, technological advancements, and the development of human capital (skills and education of the workforce).
What is the rule of thumb for Mahalanobis distance?
The result of this function is a value that represents the Mahalanobis distance of each data point from the center of the distribution. A general rule of thumb is that a Mahalanobis distance greater than 3 is considered an outlier.
His model categorizes economic growth into five distinct stages: the Traditional Society, Preconditions for Take-Off, Take-Off, Drive to Maturity, and Age of High Mass Consumption.
The 15th Five-Year Plan will continue to focus on promoting high-quality development as its central theme and set out the guiding principles, major objectives, strategic tasks, and significant measures for economic and social development over the next five years, thereby drawing a grand blueprint for economic and ...
Infrastructure, investment, innovation, and inclusiveness are the 4 key areas driving India's journey to becoming a developed nation by 2047, says Finance Minister Sitharaman.
The Mahalanobis distance measures distance relative to the centroid — a base or central point which can be thought of as an overall mean for multivariate data. The centroid is a point in multivariate space where all means from all variables intersect.
Clustering approaches include centroid-based, density-based, distribution-based, and hierarchical clustering, each suited for different data distributions and structures.
ChatGPT-4o was more than capable of this task, using the PCA function in the sklearn. decomposition module. It extracted the Principal Components, ordering them in terms of the percentage of the overall variation they explained.
If the distance between the test point and the center of mass is less than one standard deviation, then we might conclude that it is highly probable that the test point belongs to the set. The further away it is, the more likely that the test point should not be classified as belonging to the set.
K-nearest neighbor (KNN) algorithm: This algorithm is a density-based classifier or regression modeling tool used for anomaly detection. Regression modeling is a statistical tool used to find the relationship between labeled data and variable data.
A covariance matrix with all non-zero elements tells us that all the individual random variables are interrelated. This means that the variables are not only directly correlated, but also correlated via other variables indirectly. Often such indirect, common-mode correlations are trivial and uninteresting.
In a world of constant change and increasing complexity, the 5 Cs framework provides a clear, actionable approach for leaders to evaluate and strengthen their strategies. By focusing on Company, Collaborators, Customers, Competition, and Context, organizations can achieve alignment, agility, and long-term success.
The 5 Fs of goal setting is a framework for creating a balanced life by setting goals across five key areas: Fitness, Family, Finance, Faith, and Fun, ensuring you develop beyond just career or money goals. This holistic approach encourages you to establish objectives in each category—like running a marathon (Fitness), saving money (Finance), nurturing relationships (Family/Friends), finding purpose (Faith), and enjoying life (Fun)—to achieve overall fulfillment.
