Š29Š
The
Geometry of Collinearity - 2
z1
z2
Basis
vectors
r2
r1
z=Data value
= 1.7×r1+2.8×r2
= 5.1×r2 - 3.1×r3
= an “ of other
combinations
Multi-collinear
= more than
one
solution
fits the
data
= over-determined
„ Trying to fit data with too many regressors (basis vectors) doesnÕt work: no unique solution
r3
