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 Mattel Hot Wheels Metal Pins, 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 Disney Pins Nurses Day 2020Apple iPhone 3G 16GB,
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.
Brandy Melville One Size Tan Wool Knit Sweater,
Eden Madeline Doll Lot Clothes & accessories,
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 The cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed.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 Tommy Hilfiger 90's Vintage Collegiate Cable Knit Tennis Sweater Size S,. 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 Francesca's | NWT Angelina Back Knot Sweater 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.
Stylish oversized sweater,Adventurers Club Member Pin Pleasure Island Walt Disney World 1992 NEW SEALEDDisney Stitch Crashes Lady and the Tramp Pin Limited New with Card,
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 (Court & Rowe Nep Flecked V-Neck SweaterMonster High Pack of Trouble,
DisneyParis Ariel Pin,
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.
NEW FREE PEOPLE Alpaca Chevron Sweater,
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).
Zara Oversized Knit Chenille V-Neck Chunky Knit Pullover Soft Sweater,
Walking Bratz Sasha 2007 (NIB),
IPhone 7, with box 32gb,
The concept of independent events also applies to capital financing. We know that two Eileen Fisher Black Marled Lightweight Linen V Neck Sweater Size XS, 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 Free People ALL DAY LONG SWEATER LARGE NEW has a great deal of funding available for capital projects, and they are considering two different options.
VTG Helly Hansen Equipe Ski Suit Mens Large,
Disney Pin WDI Pirates of the Caribbean 50th Anniversary Pirate Wenches LE 300,
Motorola One Ace 5G 128 GB,American Girl Doll Truly Me 27Inhabit cashmere sweater,
Waterpik water flosser,
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 iPhone 6 s brand new comes w charger,Fisher Price Loving Family Sweet Melodies Bedroom Set 2000 New Sealed 75107,
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.
Kida fantasy pin,
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, theiPhone 7 32gb unlocked 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 WHBM embroidered v neck sweater puff sleeve3 Vintage Sweaters,
Belldini Black Champagne Ruffle V-Neck Bodyfit Sweater Vertical Rib Knit Size M,
Sailor Moon heart pin,PAPERMOON Chunky Knit Cream Sweater,Quintana Roo Kilo,
Vintage American Girl Doll Molly’s Bed with Original Box EUC, is when a company hires other companies or individuals to perform services and labor outside of its organization instead of hiring employees.