A permutation is an arrangement of objects in some specific order. Permutations are regarded as ordered elements.
A selection in which order is not important is called a combination. Combinations are regarded as sets.
For example, if there is a group of 3 different colored balls, then any group of 2 balls selected from it will be considered as a combination, whereas the different arrangements of every combination will be considered as a permutation.
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A permutation is a combination in order. If the order does not matter, then it is a combination. If the order does matter, then it is considered a permutation.
The order of the objects matters in permutations. For combinations the order is irrelevant.
In a combination the order of the elements does not matter. In a permutation the order does matter.