As written the body of your anonymous function is completely independent of X1 and z.
I suspect that vector and/or vector1 are in some way supposed to be functions of X1 and/or z. If that's the case (if they're anonymous functions) you need to call them with the inputs explicitly.
f = @(x, n) x.^n;
g = @(x) f(x, 2); % Calling f using the data with which g was called
g(1:5)
