I am failing to understand the proof of coming to the steady-state formula in queueing theory. This is probably due to the fact that I may have forgotten (and cannot find it back) some of the algebra from my school days. The step I am missing is the transition from the first to the second statement below:
$$(\lambda + \mu)\frac{\lambda}{\mu}P_0 = \lambda P_0 + \mu P2$$
$$\frac{\lambda^2}{\mu}P0 + \lambda P_0 = \lambda P_0 + \mu P2$$
My main question is how does $$(\lambda + \mu)\frac{\lambda}{\mu}P_0$$ become $$\frac{\lambda^2}{\mu}P_0 + \lambda P_0$$ and what did happen to: $$\mu$$
Can anybody help me out?
Recall the distributive law: If $a,b,c$ are terms, we have $(a+b)c=ac+bc$. In this case,
$$(\lambda+\mu)\frac{\lambda}{\mu}P_0 = \lambda\frac{\lambda}{\mu}P_0 + \mu\frac{\lambda}{\mu}P_0= \frac{\lambda \cdot \lambda}{\mu}P_0 + \frac{\mu \cdot \lambda}{\mu}P_0 = \frac{\lambda^2}{\mu}P_0 + \lambda P_0.$$
I hope this helps. Let me know if you need more detail.