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The primary purpose is to reduce the damage
Attributes - Armor: The primary purpose of armor is to reduce the damage you take Cabal Alz from physical attacks by a percentage.
The formula for how much is reduced is (your armor/(your armor + ((85*level) + 400))). The formula is rather complicated but at level one, one hundred armor will reduce the damage you take by twenty percent. At level seventy, one hundred armor will reduce the damage you take by 1.79 percent.
Armor is a secondary attribute for a hunter so do not worry to much about it. Look for other stats like crit chance and attack power.
Defense: Defense is another stat used to reduce melee damage. One point will increase your chance to dodge, parry or block an attack with a shield by 0.04%.
So you will need twenty five points in defense to get a 1% increase to your dodge, parry and block chance. Twenty five points will also reduce your enemies chance to hit, critically strike or deal a crushing blow. (Beast version of critical strike) You can probably see that while armor reduces the amount of damage you take, defense tries to prevent you from taking damage at all.
The problem is that the amount of defense you will need in order to have a noticeable effect is very large and it means you will have to give up on other stats. Defense is primarily a stat for hardcore tanks anyway so do not even bother looking for it.