SOLUTION: There are 5 students in a small class. To make a team, the names of 3 of them will be drawn from a hat. How many different teams of 3 students are possible?

For PERMUTATIONS, we PLACE in POSITIONS.
For COMBINATIONS, we merely CHOOSE, we don't place them in positions.

P for permutations, P for Placing in POSITIONS.
C for combinations, C for CHOOSING

We are merely CHOOSING them, not POSITIONING them, so its 
COMBINATIONS.

5 students CHOOSE 3 = 5C3  =  = 10.

Suppose the 5 students are A,B,C,D,E.  The 10 ways to choose 3 are

 1. {A,B,C}
 2. {A,B,D}
 3. {A,B,E}
 4. {A,C,D}
 5. {A,C,E}
 6. {A,D,E}
 7. {B,C,D}
 8. {B,C,E}
 9. {B,D,E}
10. {C,D,E}

Edwin