Mutually Exclusive Agreement Definition

# Mutually Exclusive Agreement Definition

Consider also the analysis of Projects A and B. Suppose Project A has a potential return of \$100,000, while Project B yields only \$80,000. As A and B are mutually exclusive, the opportunity costs of choosing B are the gain of the most lucrative option (in this case A) minus the gains generated by the selected option (B); That is, \$100,000 – \$80,000 – \$20,000. As Option A is the most lucrative option, the opportunity cost of Option A is \$0. Mutually exclusive events are events that cannot happen at once, but should not be considered independent events. Independent events have no influence on the viability of other options. For a simple example, consider rolling cubes. You can`t roll both a five and a three at the same time on a single cube. In the money-tosing example, the two results are theoretically collectively comprehensive, which means that at least one of the results must occur, so that these two possibilities exploit all possibilities. [1] However, not all mutually exclusive events are collectively exhaustive. For example, results 1 and 4 of a single roll of a six-sided cube are mutually exclusive (both cannot occur at the same time), but not collectively (there are other possible results; 2,3,5,6). The difference between the exclusive and non-exclusive agreement refers to how the supplier and partner work together.3 min Read In logic and theory of probabilities, two events (or phrases) are mutually exclusive or inconsistent if they cannot occur simultaneously. A clear example is the series of results in a single piece that can lead to heads or tails, but not both.

adj., adv. refers to everything in which both parties have reciprocal rights, understanding or agreement. Events are collectively exhaustive when all possibilities for results are exhausted by these potential events, so that at least one of these results must occur. The probability of at least one of the events occurring is equal to one. [4] For example, in theory, there are only two ways to flip a coin. Reversing the head and flipping a tail are collectively exhaustive events, and chances are you`ll be flipping either a head or a tail. Events can both be mutually exclusive and collectively exhaustive. [4] In the event of a coin tipping, tipping a head and tipping a tail, exclusive events are mutually exclusive.