Permutation means when the order is important.
Formula: nPr=n!/(n-r)!
Combination means when the order is not important.
Formula: nCr=n!/(n-r)!r!
Example 1.
In how many ways can 8 CD’s be arranged on a shelf?
Since order is important, you use permutation
Example 2:
In how many ways can a sorority of 20 members select a president, vice president and treasury, assuming that the same person cannot hold more than one office.
Order is important
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