I am new to permutation and combination and am looking for guidance in the following example:
We have 3 people - A, B, C
How many ways are there to arrange them into Rank 1,2,3
Looking at the example, it is clear that No repetitions are allowed and that ordering is not important (in the sense - Rank 1 - A, Rank 2 - B, Rank 3 - C is the same as Rank 2 - B, Rank 3 - C, Rank 1 - A).
So as a permutation problem we have answer as 3! = 6
Where as a variation problem we have the answer as 3!/0! = 3! = 6 (but if ordering is not important then it would be 3^3 = 27)
Please can you help me understand how me decide between Permutation or variation? and whether ordering is important or not?
To arrange $n$ items in a row (which can be accomplished in $n!$ ways) is equivalent to picking $k$ of $n$ items to arrange in a row (which can be accomplished in $\frac{n!}{(n-k)!}$ ways) in the case that $k=n$.
The only difference between them is semantics and that the formula for "variations" that you refer to is simply for the more generalized case where we might choose to arrange only some of but not all of our items into a row.
It helps to keep an example in the back of your mind on what exactly each of these formula count. For example, given the set $\{a,b,c,d\}$:
the calculation $4!$ here can be in reference to the number of arrangements of all letters where order of letters matters and letters may not be repeated, every letter appearing exactly once each. Such an arrangement can be thought of as a permutation. Examples of things being counted here would be
abcd,abdc,acbd,acdb, ...the calculation $\frac{4!}{(4-2)!}$ here can be in reference to the number of arrangements of only two of the letters where order of letters matters and letters may not be repeated, each letter appearing at most once each. In your terminology, this would be a "variation." Examples of things being counted here would be
ab,ac,ad,ba,bc, ... Note howabandbaare treated as being different.the calculation $\binom{4}{2}=\frac{4!}{2!(4-2)!}$ here can be in reference to the number of combinations of two of the letters where here order of letters does not matter, letters may not be repeated, each letter appearing at most once each. Perhaps more correctly described, it counts the number of subsets of size two of the set $\{a,b,c,d\}$. Examples of things being counted here would be $\{a,b\}, \{a,c\}, \{b,c\},\dots$. Note here that $\{a,b\}$ is treated as being the same as $\{b,a\}$ since these are equal sets.