Thanks everyone for the detailed answer however I have the following few questions.
1. Why use 9C1 and 8C1? Usually when we use Fundamental Counting Principle, we simply put the # of possibilities at each step. If we didn't have the restriction that two digits are the same then we would have solved it by 9*8*7. Is combination generally hidden in FCP?
Since we are choosing one digit at a time to fill a slot. Suppose you were given 3 different bowls & 9 different marbles and told that each bowl should have 2 marbles. You will do that in 9C2*7C2*5C22. Also why did you say "Arrangements Possible = 3!/2!"? I thought the permutation took care of all arrangements when we compute 9*1*8 (XXY) - as the permutation definition says that
if an event can occur in m ways and a second event in n ways then the two events can occur in m*n ways. When we have the general form XYZ, is 3!/3! hidden in the calculation?
The keyword you are missing is "
Independent" events.
Since all the slots (hundred's place, tens place & units place) are distinct, the repeated digit has three options to be in. When we have XXY arrangement, it means that we are selecting one place (either hundred's or tens place) for the repeated digit & arranging the other two places with 2 unique digits.
Consider Hundreds place for repeated digit is selected, we have 9 options for the tens Place, 8 options for the units place & 1 option for the hundred's place
For e.g. We select 1, we have arrangements,
When 1 is in hundred's place as
112, 113, 114, 115,.....119,
121, 131, 141,.....191 - 16 #'s
Now 1 in tens place, we have,
112, 113, 114,.....119, 911, 811, 711,....211 - 16#'s
Now 1 in units place, we have,
121, 131, 141,....191, 911, 811, 711,......211 - 16#'s
So we have Total Arrangements = 16 + 16 + 16 = 48, but as you can see half of which are duplicates. Hence we consider only 24 unique ones.
You can perform this for all the other remaining 8 digits, getting only 24 unique arrangements.