I am having trouble grasping how $ \frac {n!}{k!(n-k)!}$ could possibly equal the binominal coefficient.
As far as I can tell, $ \frac {n!}{k!(n-k)!}$ tells us how many combinations that are possible, if you take say, k differently numbered balls from a population of n. The $k!$ in the denominator eliminates all permutations of the same combination.
The binominal coefficient seems to tell another thing entirely, namely the number of permutations for any given combination of $ka*(n-k)b$. In this later scenario the "balls" aren't differently numbered.
How can both of theses things be calculated by the same formula?
If this question has been asked before, then kindly point me in the right direction.
/Magnus
It seems like what's confusing you isn't really the math, but the combinatorial intuition behind it. If so, perhaps the following thought experiment will help:
Clearly, there are $\frac{n!}{k!(n-k)!}$ ways to do this.
You now have a line of $n$ un-numbered balls, with $k$ of them painted red and the rest blue. I'm sure you'll agree (since you stated as much in your question) that there are ${n \choose k}$ ways to arrange these $k$ red balls in the line.
All you need to do now is observe that each choice of $k$ numbered balls out of $n$ in step 2 corresponds to a different arrangement of the red balls in step 5, and vice versa. Thus, $\frac{n!}{k!(n-k)!} = {n \choose k}$.
More generally, the key observation is that, in both cases, we're choosing $k$ elements out of $n$ distinct ones. In the first case, those $n$ distinct elements are the numbered balls; in the second case, they're the positions that the balls occupy in the line.