Thank you Brandon for the explanation.
However, I still have some confusion. I believe that this is a combination problem not a permutation one as the question basically asks us to choose cards (1 from the 26 High cards & 3 from the 26 Low cards). The arrangement of the cards is not moot. Therefore the answer should be:
26
C1 x 26
C3
Following is the solution from Kaplan which I somehow did not find very convincing. Although they have confirmed that this is a combination problem, they have applied the formula to only the 4 cards and not the selection from the entire batch of 52 cards:
"First, we need to figure out how many cards of each type we will need in order to earn 5 points. The "low" cards are worth 1 point. Since the question says we must draw 3 of these "low" cards, we get 3 points from "low" cards. This leaves us with 5 – 3 = 2 points left that we need to earn with the "high" cards. Since "high" cards are worth 2 points each, if we get one "high" card, we will reach our goal of 5 points total. Hence it takes us four cards to get 5 points: 3 "low" and 1 "high."
Our task is now simply to discover how many ways we can draw these 4 cards. Let’s draw out the possible ways: (L L L H), (L L H L), (L H L L), (H L L L) for a total of 4 different ways to get 3 "low" and 1 "high." Answer Choice (D) is correct.
Alternatively, we could have used the combination formula, which is the number of different ways of choosing k objects from n different objects. If nCk is the number of different subgroups of k objects that can be selected from a group of n different objects, then . Remember, in this formula,n ≥ k.
Now let’s plug numbers into the formula so that n is greater than or equal to k. We know we need 4 cards, so n = 4. Also, k is always less than or equal to n, and in this case we know we need 3 of the "low" cards, so k = 3. The number of possibilities is
This method also brings us to Answer Choice (D). The combination formula is the concrete math underlying this problem, but the key step here is realizing that it is unnecessary; it is much faster and easier just to count the possibilities."