How does Ethernet handle collisions?

In Ethernet networks, when two devices transmit data at the same time, a collision occurs. The correct approach that Ethernet uses to manage these collisions is for devices to wait for a random period of time before attempting to retransmit their data. This method is part of the Carrier Sense Multiple Access with Collision Detection (CSMA/CD) protocol.

The waiting period is random to reduce the chance of repeated collisions when multiple devices react to the same event at the same time. After a collision is detected, each device will stop transmitting, listen to the network, and then wait for a random amount of time before trying to send their data again. This technique helps in managing network traffic efficiently and minimizing disruptions caused by collisions, thus ensuring more reliable communication among devices on the network.

In contrast, the other options do not accurately reflect how Ethernet collision management works. Stopping all transmissions altogether would lead to network inefficiency, while the notion of lost data implies that nothing can be done, and alerts to users are unnecessary for managing data collisions within the network. Thus, the method of waiting a random time before retransmitting is the most effective and established technique employed by Ethernet to mitigate collisions.