To prove: $$\sum_{s=r}^{\infty}\binom{m}{s} \binom{s}{r}(-1)^s=0 $$
Use the identity: $$(1 + x)^ m (1 + x)^{ -(r+1)} = (1 + x)^{ m-r-1}$$
I have trouble understanding the hint, could somebody help me understand what is meant?
Hint: use the generating function for negative powers of $1+x$ to determine the coefficient of $x^{ m−r}$ in left and right hand side of this identity, this coefficient is $0$. Why? Then derive the result by suitable substitutions of the summation variables.
I specifically don't understand what is meant with "using the generating function for negative powers of $1+x$ " and determining the coefficient related to $x^{m-r}$
The formula for negative powers would give me:
$$(1+x)^{-n} = \sum_{k=0} ^{\infty} \binom{-n}{k}x^k$$
If I would write this out for both sides I get: $$ \sum_{k=0} ^{\infty} \binom{m}{k}x^k \sum_{k=0} ^{\infty} \binom{-(r+1)}{k}x^k = \sum_{k=0} ^{\infty} \binom{m-r-1}{k}x^k$$
I know I can determine the coefficient of $x^n$ by writing $\sum a_k b_{n-k}=c_n$.
First of all, your formula for negative powers makes no sense. Your variables are all messed up. The power you're raising stuff to is $n$, which is also the index for your sum and $k$ is undefined. The formula on the RHS appears to be the expansion of $(1+x)^{-k}$, but I find its easiest to just recompute these things and doing so will give us a more convenient form of the formula anyway.
The correct approach is the following.
Start with the geometric series: $$\frac{1}{1-x} = \sum_{i=0}^\infty x^i.$$ Then raise both sides to the $k$th power, to get $$(1-x)^{-k} = \left(\sum_{i=0}^\infty x^i\right)^k.$$ The coefficient of $x^\ell$ in the right hand side is the number of ways to choose $k$ distinct, ordered nonnegative integers that sum to $\ell$. This is the stars and bars problem, and has the well known solution $\binom{\ell+k-1}{k-1}$. Thus we have $$(1-x)^{-k} = \sum_{i=0}^\infty \binom{i+k-1}{k-1} x^i.$$ Finally, substitute $-x$ for $x$ to get $$(1+x)^{-k} = \sum_{i=0}^\infty \binom{i+k-1}{k-1} (-1)^i x^i.$$
I think this might be equivalent to the formula you've given, but nonetheless, I believe they want you to use this form of it, since it has the appropriate $(-1)^i$ that your formula is missing.
Now, if we multiply $(1+x)^m(1+x)^{-(r+1)}$, apply the formula and then take the coefficient of $m-r$, we get $$\sum_{s=0}^{m-r} \binom{m}{s}\binom{(m-r-s) + (r+1) -1}{(r+1)-1}(-1)^{m-s}$$ $$=\sum_{s=0}^{m-r} \binom{m}{s}\binom{m-s}{r}(-1)^{m-s}.$$
Now if we reindex, with the new $s$ being $m-s$, we find that the sum runs from $r$ to $m$, and we have $$=\sum_{s=r}^m \binom{m}{m-s}\binom{s}{r}(-1)^s=\sum_{s=r}^m\binom{m}{s}\binom{s}{r}(-1)^s.$$
The coefficient of $x^{m-r}$ on the right hand side is obviously zero, since the rhs has degree $m-r-1$, so we get $$\sum_{s=r}^m\binom{m}{s}\binom{s}{r}(-1)^s=0,$$ as desired.