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I always mix up when to use permutations and when to use combinations in a counting problem. Both seem to count selections to me.
The key difference is whether order matters. Use permutations nPr when arrangement or order is important, like seating people in a row or forming numbers. Use combinations nCr when only the selection matters and order does not, like choosing a team or a committee. The formulas are nPr = n! divided by (n − r)! and nCr = n! divided by [r!·(n − r)!]. Notice nPr = nCr × r!, because each chosen group of r items can be arranged in r! orders. A quick test: ask yourself if swapping two chosen items gives a genuinely different outcome. If yes, it is a permutation; if it is the same outcome, it is a combination. For example picking 3 winners with ranks uses nPr, picking 3 prize winners equally uses nCr.
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