Large Language Models (LLMs) often encode whether a statement is true as a vector in their residual stream activations. These vectors, also known as truth vectors, have been studied in prior work, however how they change when context is introduced remains unexplored. We study this question by measuring (1) the directional change (𝜃) between the truth vectors with and without context and (2) the relative magnitude of the truth vectors upon adding context. Across four LLMs and four datasets, we find that (1) truth vectors are roughly orthogonal in early layers, converge in middle layers, and may stabilize or continue increasing in later layers; (2) adding context generally increases the truth vector magnitude, i.e., the separation between true and false representations in the activation space is amplified; (3) larger models distinguish relevant from irrelevant context mainly through directional change (𝜃), while smaller models show this distinction through magnitude differences. We also find that context conflicting with parametric knowledge produces larger geometric changes than parametrically aligned context. Collectively, these findings provide a geometric characterization of how context transforms the truth vector in the activation space of LLMs.

Large Language Models (LLMs) can transfer their reasoning skills to smaller models by teaching them to generate the intermediate reasoning process required to solve multistep reasoning tasks. While LLMs can accurately solve reasoning tasks through a variety of strategies, even without fine-tuning, smaller models are not expressive enough to fit the LLMs distribution on all strategies when distilled and tend to prioritize one strategy over the others. This reliance on one strategy poses a challenge for smaller models when attempting to solve reasoning tasks that may be difficult with their preferred strategy. To address this, we propose a distillation method SIKeD: **S**elf-guided **I**terative **K**nowledg**e** **D**istillation, where the LLM teaches the smaller model to approach a task using different strategies and the smaller model uses its self-generated on-policy outputs to choose the most suitable strategy for the given task. The training continues in a self-guided iterative manner, where for each training iteration, a decision is made on how to combine the LLM data with the self-generated outputs. Unlike traditional distillation methods, SIKeD allows the smaller model to learn which strategy is suitable for a given task while continuously learning to solve a task using different strategies. Our experiments on various mathematical reasoning datasets show that SIKeD significantly outperforms traditional distillation techniques across smaller models of different sizes.