Companies often use capital budgeting 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. Mutually exclusive events are the events that cannot occur or happen at the same time.

- It is commonly used to describe a situation where the occurrence of one outcome supersedes the other.
- In probability theory, two events are mutually exclusive events or disjoint if they do not occur at the same time.
- There are two paths; one that takes him to school and the other one that takes him home.
- When two events are mutually exclusive, they cannot happen simultaneously — It’s one or the other.

If two events are considered disjoint events, then the probability of both events occurring at the same time is zero. 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. If two events are mutually exclusive, only one of them can occur.

## Company

Add mutually exclusive to one of your lists below, or create a new one. Typically, a look back period of 14 days is considered for its calculation and can be changed to fit the characteristics of a particular asset or trading style. Mutually exclusive events are those events that can not take place at the same time. For instance, you can not run backwards and forwards at the same time. Again, we note from the Venn diagram that $E2$ and $E3$ share an overlapping region and hence are NOT mutually exclusive. We note from the Venn diagram that $E1$ and $E3$ do overlap and hence are NOT mutually exclusive.

Independent events have no impact on the viability of other options. You cannot roll both a five and a three simultaneously on a single die. However, you absolutely can roll a five and a three on two dice. Rolling a five and three simultaneously means this outcome is mutually exclusive. Rolling a five on one and a three on the other means they are not mutually exclusive outcomes.

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## Frequently Asked Questions on Mutually Exclusive Events

We note from the Venn diagram that $E1$ and $E2$ do not overlap and hence are mutually exclusive. But entering the workforce https://1investing.in/ instead of going to college has an opportunity cost as well. Although the answer may be clear, we list both the sets.

Information is from sources deemed reliable on the date of publication, but Robinhood does not guarantee its accuracy. 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 (CEO), they might narrow it down to two different candidates. The two choices are mutually exclusive — The company cannot hire two CEOs.

## What are Mutually Exclusive Events?

It is commonly used to describe a situation where the occurrence of one outcome supersedes the other. For example, war and peace cannot coexist at the same time. Mutually exclusive events are things that can’t happen at the same time. For example, you can’t run backward and forwards at the same time. The events “running forward” and “running backward” are mutually exclusive events. Because you do not put any cards back, the deck changes after each draw.

## What is an example of mutually exclusive event?

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## Definition of Mutually Exclusive Events

We can say that if A and b are two mutually exclusive events then the intersection of their probability is 0. In probability, we define mutually exclusive events as events that can not occur simultaneously. That is if one event happens then it is impossible for another event to happen.

We know that two capital projects 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 corporation has a great deal of funding available for capital projects, and they are considering two different options. The concept of mutually exclusive events offers numerous applications in finance.

We know that it is not possible for mutually exclusive events to occur simultaneously. We cannot get both heads and tails while tossing a coin. So “getting a head” and “getting a tail” are mutually exclusive events. We know that mutually exclusive events cannot occur at the same time. In this case, the sum of their probability is exactly 1.

## The Meaning of Mutually Exclusive in Statistics

A company that manufactures wallets for men is currently evaluating all its investment opportunities for the coming year. The company has three options to invest its resources. The first option is to increase its plant installed capacity, to meet an increasing demand. If [A ⋃ B] be the sample space, then the above two conditions are true. I) On a throw of a die, the two events “getting 1” and “getting 5” are two mutually-exclusive events because we will never get both 1 and 5 at one time in a throw.