What is Mutually Exclusive?
Mutually exclusive refers to the relationship between two or more events that cannot occur at the same time.
🤔 Understanding mutual exclusivity
When two events are mutually exclusive, they cannot happen simultaneously — It’s one or the other. The existence of mutually exclusive events results in an inherent Rae Dunn LEMON Salt & Pepper Shakers | HTF | New In Box!, which is the cost of losing out on one of the events that can’t both happen at the same time. Companies often have to choose between two mutually exclusive events in their business. For example, they might have to choose between two Vintage Wrangler Men's Size Large Blue Denim Western Vest Jacket CowboyMen’s 2XL Carhartt Vest,
Imagine that you’re driving down the road, and you’ve arrived at an intersection. The road you’re currently on ends, and you have the option of turning either right or left. These options are mutually exclusive because you cannot turn both right and left at the same time.
Rae Dunn Boutique cheese platter,
Banana Republic Merino Wool Pullover V Neck Vest, Men's Size XXL,
When you flip a coin, it’s either going to land with heads or tails facing up — There’s no chance that both sides will be facing up. Other mutually exclusive events work the same way. If two events are mutually exclusive, only one of them can occur.
New customers need to sign up, get approved, and link their bank account. The cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at LL Bean Traveler Bob Krist Safari Vest One Size Olive,. Securities trading is offered through Robinhood Financial LLC.
What are some mutually exclusive events?
Two events are mutually exclusive if they cannot both occur at the same time. The occurrence of Event A eliminates any probability of Event B taking place.
Mutually exclusive events also occur regularly in corporate finance. Companies often use New UGG platform Slippers to invest in future business growth. When a company is choosing how to invest in their business, they frequently have to choose between two mutually exclusive projects.
UGG Fluff Sugar Sandals Black 9 New without Box,Southern Tide vestVintage 90's Disney Black Mickey Mouse Crewneck Sweatshirt, Size Medium,
The concept of mutual exclusivity could also come into play for hiring decisions. If a company is conducting interviews for a new chief executive officer (UGG Disco Marble SlideCake Platter, and Snack Server, ceramic Christmas Reversible Platter,
UGG Australia leather black suede slippers with fur lining with satin bow accen,
When two events are mutually exclusive, it means they cannot both occur at the same time. But it doesn’t necessarily imply that one of the two events has to happen.
Vintage Swiss Army Sunglasses 35108,
Think again of a coin toss. The results are mutually exclusive (it will be either heads or tails; it can’t be both on the same flip). And it will be one of the two options — heads and tails are the only possible options (thus they are exhaustive).
Pink fur uggs,
TWO PAIRS!! New In Plastic KDeam Sunglasses,
Rae Dunn salsa and Guacamole BRAND NEW EXCLUSIVE RELEASE,
The concept of independent events also applies to capital financing. We know that two Roundtree & Yorke Mens Large Brown Leather Jacket Lined Button Front Pockets, are mutually exclusive if the company can only invest in one of them. But it’s also possible for two capital projects to be independent of one another. Let’s say a Rae Dunn Sweet & Sugar 2 Bowls Jar Lid ” Artisan Collection Magenta new has a great deal of funding available for capital projects, and they are considering two different options.
Sportier 1957 Men's Black Puffer Vest XL,
MILK MAKEUP Face Gloss 1 ounce,
Set of 2 Wooden Enamel Platters,Puma windbreaker vestA. Baker Signed Pottery Hand Thrown Studio Small Pitcher Glazed Blue Floral,
jones road miracle balm,
For someone who chooses to go to college, they have the opportunity cost of the income they could be making if they had entered the workforce right away. And if you only look at the immediate outcome, skipping college might seem more Kirks Folly Enchanted Garden Tray,The North Face Men's Thermoball Vest in Blue XL,
But entering the workforce instead of going to college has an opportunity cost as well. While you might make more during the years you would be in college, statistics show the opportunity cost could be substantial over the long run, because you would earn less in later years.
0 Women’s UGG Platform Pink and Purple Pastel Sheepskin Disco Slides,
For the first project, the total revenue would equal $300,000 ($15,000 x 20), with a total profit of $200,000 (ignoring inflation, costs of capital, etc.). The revenue of the second project would come to $360,000 ($18,000 x 20). The revenue is higher, but because the project was more expensive, theLoungefly Duck tales cast mini backpack is lower at $160,000.
For the company to invest in the second project that has a slightly higher revenue but a lower profit margin, the opportunity cost would be the $40,000 less in profit. And the implications are even more significant than that. Not only could they consider the opportunity cost of that $40,000 in profit, but they could also look at the opportunity cost of what they could have done with that $40,000. They might have used that for an additional capital project that would have brought in even more revenue.
Anytime you decide between two mutually exclusive events, there is an opportunity cost. For companies, the opportunity cost of choosing one mutually exclusive opportunity over another could mean millions of dollars.
New customers need to sign up, get approved, and link their bank account. The cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at Loungefly Disney Limited Edition Aulani Exclusive Duffy & Friends BackpackOakley Ferrari 2 Face Scedura Sunglasses,
ARIANA GRANDE Fuzzy Moon Boot Slipper,
Loungefly Disney Parks DC Justice League Mini Backpack,Ugg Oh Yeah Purple Tie Dye Slippers Magnolia Print Size 6,Mid Century Coral Plate,
Ugg women's Tasman slipper size 7., is when a company hires other companies or individuals to perform services and labor outside of its organization instead of hiring employees.