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Projections

 

In the special case of orthogonal projectors, . Nonorthogonal projectors transform vectors to by ``casting the shadow'' at a different angle from the perpendicular to the plane .

 

If P is a projector onto , so that PX=X, then

for all possible values of . For this reason, all projections of y onto are linear unbiased estimators of , differing according to the direction the projectors go along. The OLS estimator is the orthogonal projection of y. In the figure above we illustrate nonorthogonal projection.



ruud@econ.Berkeley.EDU