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Statistics for Decision- Making in Business - Maricopa Community ...

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Which, <strong>in</strong> its f<strong>in</strong>al state gives:<br />

This does look rather complicated, but remember that it follows from some fairly simple th<strong>in</strong>gs<br />

that we have built up on. Also notice that both the top fraction and the bottom fraction have .<br />

Ah, yes! So that‟s why the order-not-elim<strong>in</strong>ated and order-elim<strong>in</strong>ated answers are the same:<br />

⏟<br />

⏟<br />

While this works out beautifully <strong>in</strong> this example, it is not always true, and so we must take care<br />

to observe whether order difference is important. We will see examples later where this<br />

difference will come <strong>in</strong>to play, but those situation are a bit more advanced.<br />

Let‟s simplify this horrid notation a bit. Suppose that there are a total of<br />

are to be drawn.<br />

items and of those<br />

Permutation – Order Does Matter<br />

If order is not to be elim<strong>in</strong>ated (<strong>in</strong> cases where order is important), then the number of ways to<br />

select th<strong>in</strong>gs from the given is called a permutation and is denoted:<br />

( )<br />

NOTE: ( ) , that is, factorial is not distributable!! Subtract first, then use<br />

factorial.<br />

For our numerator, we had selected 2 uncontam<strong>in</strong>ated bushels from a total of 18 uncontam<strong>in</strong>ated<br />

bushels. Accord<strong>in</strong>g to our new notation, this can be written as:<br />

( )<br />

And this is precisely what we have written <strong>for</strong> the numerator!<br />

For our denom<strong>in</strong>ator, we had selected 2 (general) bushels from a total of 20 (general) bushels,<br />

s<strong>in</strong>ce we want to know the total number of ways 2 objects can come out of 20.<br />

<strong>Statistics</strong> <strong>for</strong> <strong>Decision</strong>-<strong>Mak<strong>in</strong>g</strong> <strong>in</strong> Bus<strong>in</strong>ess © Milos Podmanik Page 123

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