Calculates the number of ways to arrange r items chosen from n, nPr = n × (n−1) × … × (n−r+1), where the order matters.
A permutation counts the ways of choosing items from and arranging them in a row. The order matters.
It is a product of factors: choices for the first place, for the second, and so on down.
Pick 3 people out of 5 and award first, second and third place.
There are 5 candidates for first place, 4 remaining for second and 3 for third, giving arrangements.
The only difference is whether the order counts.
A permutation count is times the combination count, because each set of chosen items can be arranged in orders.
Use permutations when the arrangement carries meaning — rankings, seating, PIN codes. Use combinations when you are only selecting.