Which of the following about Monte Carlo valuation is not correct?

The approximation error is random, varying with the number of sample draws, and the standard deviation goes to zero as the number of draws approaches infinity.

If the terminal stock price S(T) is lognormal, then the samples are drawn from logS(T) ~ N (logS(0) + (mu sigma*sigma/2)*T, sigma*sigma*T), where mu is the stock return and sigma is the stock volatility.

If the terminal stock price S(T) is lognormal, then the samples are drawn from logS(T) ~ N (logS(0) + (r sigma*sigma/2)*T, sigma*sigma*T), where r is the risk-free rate and sigma is the stock volatility.

It uses the average of the simulated values to approximate the expectation.