I have to prove that $$n{n\choose{r}}=(r+1){n\choose{r+1}}+r{n\choose{r}}$$ I can prove this combinatorially as follows, we have $n$ people, we want to choose $r$ people and a leader who could be within the $r$-group or outside the $r$-group but among the $n$ people. The number of such possible groups is obviously $n{n\choose{r}}$. Or we could simply choose $r+1$ people for the case when the leader is not within the group and then among them I can choose one of those $(r+1)$ to be the leader (which accounts for the $(r+1){n\choose{r+1}}$) and for the cases when the leader is withing the group, I choose $r$ people and then among those $r$ people I choose one of them as the leader (which accounts for the $r{n\choose{r}}$). But I am curious if there is a proof using generating functions. I am new to using generating functions and even a hint would help (if the solution is possible) because I am just not getting how to begin.
Is there some way to prove $n\binom nr=(r+1)\binom n{r+1}+r\binom nr$ using generating functions?
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There are several generating function approaches.
We could take the generating function of both sides with respect to $r$, and try to prove that $$ \sum_{r \ge 0} \left(n \binom nr\right) x^r = \sum_{r \ge 0} \left((r+1) \binom{n}{r+1} + r \binom nr\right)x^r. $$ To prove this, we want closed forms for both sides, which start with the generating function $$ (1+x)^n = \sum_{r \ge 0} \binom nr x^r. $$ On the left, this generating function is only multiplied by a constant (independent of $r$); on the right, the $r^{\text{th}}$ term of the sum is multiplied by $r$, which requires taking some derivatives.
We could theoretically also take the generating function of both sides with respect to $n$, but that generating function doesn't have a nice closed form.
Finally, we could take the bivariate generating function of both sides with respect to $r$ and $n$. This requires starting with $$ \sum_{n \ge 0} \sum_{r\ge 0} \binom nr x^r y^n = \sum_{n \ge 0}(1+x)^n y^n = \frac{1}{1-(1+x)y}. $$ Then we need to take some derivatives with respect to $x$ or with respect to $y$ to transform this into the generating function for $n \binom nr$, or $r \binom nr$, or $(r+1)\binom n{r+1}$. Once we've done that, we can prove the identity you want by proving that it holds for the corresponding generating functions.
Another variation with generating functions is based upon the coefficient of operator $[x^r]$ which denotes the coefficient of $x^r$ of a series. This way we can write for instance \begin{align*} \binom{n}{r}=[x^r](1+x)^n\tag{1} \end{align*} Given a generating function $A(x)$ we have \begin{align*} A(x)&=\sum_{j=0}^\infty a_j x^j\qquad\qquad A^{\prime}(x)=\sum_{j=0}^\infty ja_jx^{j-1} \end{align*} from which we derive by comparing coefficients \begin{align*} r a_r&=\color{blue}{r[x^r]A(x)=[x^{r-1}]A^{\prime}(x)}\tag{2} \end{align*}
Comment:
In (3) we apply (1) twice.
In (4) we apply (2) twice.
In (5) we use the rule $[x^p]x^qA(x)=[x^{p-q}]A(x)$.
In (6) we use the linearity of the coefficient of operator.
In (7) we select the coefficient of $x^r$.