Q: Consider the following 1-D problem that describes some organism dispersing with constant diffusion $D$ and a mortality proportional to the population $n$: $$\frac{\partial n}{\partial t}=D\frac{\partial^2n}{\partial x^2}-\mu n$$ where $D>0$, $\mu>0$, $n$ is the population. Find the population distribution at any $x$ and $t$ arising from $N_0$ organisms being released at $x = 0$ at $t = 0$, that is, $n(x,0)=N_0\delta(x)$.
Now I know if the second term $-\mu n$ on the right was not there, then the solution would be the fundamental solution to diffusion equation which we know to be
$$n(x, t)=\frac{N_0}{2(\pi D t)^{1 / 2}} e^{-x^{2} /(4 D t)}, \quad t>0$$
How do I get a solution like this that accounts also for that second term in the pde?
Have you tried doing separation of variables here? What I mean is that you suppose $n(x,t) = X(x)T(t)$ and then do the derivatives. You should get to: $$ \frac{T'}{T} = D \frac{X''}{X} - \mu $$
Since X is only a function of x (and not T) you can solve the two functions independently. That is:
$$ \frac{T'}{T} = -(\lambda+\mu)$$ $$ D\frac{X''}{X} = -\lambda $$
Both this equations are solvable. The minus sign in $\lambda$ is for convention, but you should be careful whether the cases $\lambda=0$ and $\lambda<0$ are rightfully discarded.
Although I think that you're missing the boundary conditions (you only have an initial condition) you could impose that the solution must be finite when $x\rightarrow \pm \infty$. This way you should be able to obtain a solution probably as a Fourier Series. Haven't actually done the whole math in detail, but I think this should work.