Basis Functions



The unit vectors,
e1 = (1, 0, 0), e2 = (0, 1, 0), & e3 = (0, 0, 1),
are a set of basis vectors for 3-dimensional Euclidean space because any 3-dimensional vector of real numbers can be expressed as a linear combination of e1, e2, and e3. E.g.,
(2, -11.5, 3.7) = 2e1 - 11.5e2 + 3.7e3.

If the space of interest to us is a space of functions, then we may be able to identify and work with a convenient set of basis functions. E.g., the space of all cubic polynomials is spanned by
h0(x) = 1, h1(x) = x, h2(x) = x2, & h3(x) = x3
--- these four functions are a set of basis functions for the space since any cubic polynomial can be expressed in the form
a0h0(x) + a1h1(x) + a2h2(x) + a3h3(x).

If we are trying to find an approximation of E( Y | (x1, x2) ) which is a real-valued function of x1 and x2, we might consider the set of basis functions
h0(x1, x2) = 1,
h1(x1, x2) = x1,
h2(x1, x2) = x2,
h3(x1, x2) = x12,
h4(x1, x2) = x22,
& h5(x1, x2) = x1x2,
and use OLS regression to arrive at an approximation of the form
b0h0(x1, x2) + b1h1(x1, x2) + b2h2(x1, x2) + b3h3(x1, x2) + b4h4(x1, x2) + b5h5(x1, x2)
= b0 + b1x1 + b2x2 + b3x12 + b4x22 + b5x1x2.
While polynomials are commonly used to approximate E(Y | x), one can consider other basis sets as well.