Given below are two statements:
Statement l: One of the assumptions under OLS method states that the regression model is linear in the parameters, though it may or may not be linear in the variables.
Statement ll: The variance of the error, or disturbance, term is not the same regardless of the value of the explanatory variable under OLS.
In light of the above statements, choose the most appropriate answer from the options given below
1
Both statement l and statement lI are correct
2
Both statement l and statement ll are incorrect
3
Statement l is correct but statement ll is incorrect
4
Statement l is incorrect but statement ll is correct