Three statements are given:
(a) Generalised Least Square (GLS) method is capable of providing BLUE in situations where OLS fails
(b) GLS is OLS on the transformed variables that satisfy the standard least squares assumptions
(c) GLS method is suitable for dealing with multicollinearity problem
Choose the correct option:
1
(a) and (b) are correct but (c) is not correct
2
(a) and (c) are correct but (b) is not correct
3
(a) is correct but (b) and (c) are not correct
4
(a) is not correct but (b) and (c) are correct