Question

No more than one state of nature can occur at a given time for a chance event. This indicates that the states of nature are defined such that they are

a. conservative events.
b. mutually exclusive.
c. independent outcomes.
d. collectively exhaustive.

Answer 1

b. mutually exclusive.

Explanation:

The given description is an illustration of mutually exclusive events.

Take for instance, when you roll a die;

It is impossible to have an outcome of 2 and 6 at the same time; these means that 2 and 6 are mutually exclusive.

In a nutshell, when two or more sates of events/states of nature can not happen at the same time; such events/states of nature are mutually exclusive.