I am trying to understand thesolution of the following example:
Each cuatomer who enters John's clothing store will purchase a suit with probability p. If the number of customers entering the store is a poisson random variable with mean $\mu$, what is the probability that John sells k suits?
Solution:
$P(X=k) = \sum_{n=0}^\infty P(X=k|N=n) P(N=n) = \sum_{n=0}^\infty\binom{n}{k} p^k (1-p)^{n-k}e^{-\mu}\frac{\mu^n}{n!} $
So far i could understand. Bue the rest of the solution i can not understand. Ould someone be able to break it down for me ?
$ = e^{-\mu}\frac{(\mu p)^{n}}{k!} \sum_{n=0}^\infty \frac{(\mu(1-p))^{n-k}}{(n-k)!} = e^{- \mu p} \frac{(\mu p)^k}{k!},k>0 $
Note that $P(X=k\mid N=n)=0$ if $n<k$ so that we can start the summation with $n=k$ instead of $n=0$.
Let's abbreviate $q:=1-p$
$$\sum_{n=k}^{\infty}\binom{n}kp^kq^{n-k}e^{-\mu}\frac{\mu^n}{n!}=e^{-\mu}\sum_{n=k}^{\infty}\binom{n}k(\mu p)^k(\mu q)^{n-k}\frac1{n!}=e^{-\mu}\sum_{n=k}^{\infty}\frac{(\mu p)^k(\mu q)^{n-k}}{k!(n-k)!}=$$$$e^{-\mu}\frac{(\mu p)^k}{k!}\sum_{n=k}^{\infty}\frac{(\mu q)^{n-k}}{(n-k)!}=e^{-\mu}\frac{(\mu p)^k}{k!}\sum_{n=0}^{\infty}\frac{(\mu q)^{n}}{n!}=e^{-\mu}\frac{(\mu p)^k}{k!}e^{\mu q}=e^{-\mu p}\frac{(\mu p)^k}{k!}$$