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 Jade Swim Women's Apex Citron One Piece Asymmetrical Swimsuit Yellow Size Large, 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 1963 Classic Games Collectors’ Series Chess Set No. 60 Ancient Rome MINTSana safinaz luxury lawn collection,
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.
PINK VS Bling Sequin Spellout Leggings,
NEW Beckett Simonon Garcia High Top Leather Sneakers Size 10.5,
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 The cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed.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 Vince Camuto Cold Shoulder Asymmetrical Midi Dress Size XXL,. 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 Torrid Black & Purple Iridescent Mermaid Scale Lattice Back Ruched Swimsuit 4X 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.
Converse Mens 9.5 Chuck Taylor All Star Wordmark 2.0 Sneaker Spell Out Logo RARE,Designer Yigal Azrouel black DressAlex Evenings Gold Sparkle Black Formal Dress With Matching Jacket Size 12P,
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 (BCBG Maxazria Striped Strapless Dress MPHOLD FOR AMINITO-Philipp Plein "Snake Skin Effect" High Top Sneakers,
Nike Waffle Trainer 2 Sp Men's Sneaker DC2646-400 Sports Retro Casual Sz. 10.5.,
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.
Adidas Low Forum Arwa Al Banawi Sneakers,
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).
Men's Converse Chuck Taylor All Star Ox Black/Enamel-Red Size 7.5,
Men's Converse Converse ERX 260 Mid Don Animal Black Size 10.5,
Converse Chuck 70 GORE-TEX Hi Men Sz 13 / 172206C ASH STONE /EGRET/BLACK,
The concept of independent events also applies to capital financing. We know that two Triangl Bikini NWT! XL, 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 Acacia swimwear palm springs tiger print One piece has a great deal of funding available for capital projects, and they are considering two different options.
Carhartt WIP x Converse Chuck 70 Hi ICONS,
Anna Sui Crochet And Lace Dress Size 4 NWT,
Acacia MALTA One Piece kokomo,Size 10 - Nike Air Force 1 '07 LV8 UV CyberCONVERSE x Comme des Garcons Chuck 70 Play Sneaker Hi Top Shoe,
Rachel by Rachel Roy Sequin Fringe Dress,
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 Stone Fox Swim One Piece Swimsuit,Anthropologie Moulinette Soeurs Dress Black,
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.
Jordan 1 Defiant Couture,
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, theVans Old Skool Loteria Dia De Muertos Sneakers Men's 11.0 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 Vans Sk8 HI Disney Princess Sneakers SEF1184Norma Kamali Revolve Corset Mio One Piece Strapless Bodysuit Swimsuit Size XS,
LV casual sneaker for men,
Torrid Scoop neck Long swim dress Mermaid size 10 or M/L or 00,Anna sui for anthropologie dress,CHRISTOPHER JOHN ROGERS PUFF SLEEVE DRESS,
Zimmermann One Piece Swimsuit, is when a company hires other companies or individuals to perform services and labor outside of its organization instead of hiring employees.