The problem is stated below
Find the range of $\alpha$ such that $1-x-\alpha x^2$ has roots greater than $1$ or less than $-1$ (i.e if $\mu_1$ and $\mu_2$ are the roots of $1-x-\alpha x^2$, we require $|\mu_1|, |\mu_2|>1$).
Solution:
Transform the above question into the following. We require the roots of the quadratic equaion $\frac{1}{x^2}-\frac{1}{x}-\alpha$ have absolute value smaller than 1. Its roots are given by $$\mu_1=\frac{1+\sqrt{1+4\alpha}}{2}, \mu_2=\frac{1-\sqrt{1+4\alpha}}{2}$$
Case 1: If $1+4\alpha > 0$, then $|\mu_1|<1$ implies $\alpha <0$.
Case 2: If $1+4\alpha < 0$, then $|\mu_1|<1$ is equivalent to $(\frac{1}{2})^2-(\frac{\sqrt{1+4\alpha}}{2})^2<1$ which implies $\alpha > -1$.
Thus the solution is given by $-1<\alpha<0$.
My Questions:
In the solution given, only the absolute value of $\mu_1$ is taken into consideration. Why?
Also, I don't understand how $(\frac{1}{2})^2-(\frac{\sqrt{1+4\alpha}}{2})^2<1$ is come from. I know that when $1+4\alpha < 0$, the roots would become complex number. Yet, I still can't come up with the expression above.
Because, as noted just above that: "We require the roots ... have absolute value smaller than 1".
When $1+4 \alpha \lt 0$ let $\beta = -(1+4 \alpha) \gt 0$, so that $\sqrt{\beta}= i\, \sqrt{1+4 \alpha}$. Then the roots can be written as $\mu_{1,2} = \frac{1}{2} \pm i \frac{\sqrt\beta}{2}$ and $|\mu_{1,2}|^2 = \left(\frac{1}{2}\right)^2+\left(\frac{\sqrt{\beta}}{2}\right)^2 = \left(\frac{1}{2}\right)^2+\left(\frac{i \; \sqrt{1 + 4 \alpha}}{2}\right)^2 = \left(\frac{1}{2}\right)^2-\left(\frac{\sqrt{1 + 4 \alpha}}{2}\right)^2$.
[ EDIT ] To answer the question from the comment, in Case 1:
$$\mu_1=\frac{1}{2} + \frac{\sqrt{1+4\alpha}}{2} \lt 1 \iff \frac{\sqrt{1+4\alpha}}{2} \lt \frac{1}{2} \iff \sqrt{1+4\alpha} \lt 1 \iff \alpha \lt 0$$