Permutation and Combination

The concepts of permutation and combination will help you understand the chapter of Probability
distribution (Binomial distribution and Poisson distribution)

For example, suppose we have a set of three letters: A, B, and C. We might ask how many ways we can
arrange 2 letters from that set. Each possible arrangement would be an example of a permutation. The
complete list of possible permutations would be: AB, AC, BA, BC, CA, and CB.

The number of permutations of n objects taken K  at a time is 

nPk = n(n - 1)(n - 2) ... (n - k + 1) = n! / (n - k)!

Translation: n refers to the number of objects from which the permutation is formed; and n refers to the
number of objects used to form the permutation. Consider the example from the previous paragraph. The
permutation was formed from 3 letters (A, B, and C), so n = 3; and the permutation consisted of 2 letters,
so k= 2.

A combination is a selection of all or part of a set of objects, without regard to the order in which objects
are selected.

For example, suppose we have a set of three letters: A, B, and C. We might ask how many ways we can
select 2 letters from that set. Each possible selection would be an example of a combination. The
complete list of possible selections would be: AB, AC, and BC.

Computing the number of combinations. The number of Combinations of n objects taken k at a time is 
n Ck = n(n - 1)(n - 2) ... (n - k + 1)/k! = n! / k!(n - k)!

Note that AB and BA are considered to be one combination, because the order in which objects are
selected does not matter. This is the key distinction between a combination and a permutation . A
combination focuses on the selection of objects without regard to the order in which they are selected. A
permutation, in contrast, focuses on the arrangement of objects with regard to the order in which they are
arranged.