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Pure Birth Process

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4 $begingroup$ I encountered this problem while trying out various practice problems to study for my stochastic processes test. (It's not homework, it's just a practice problem). Consider a pure birth process on the states 0,1,...,n for which $lambda_k = (N-k)lambda$ for $k = 0,1,...,N$. Suppose that $X(0) = 0$. Determine $P_n(t) = Pr{X(t)=n}$ for $n = 0,1,2$ The solution that I was given was $P_n(t) = {N choose n}e^{-(N-n)lambda t}(1-e^{-lambda t})^n$. Could someone please explain this problem's solution to me? I can't seem to derive it from any formula that I have been given by the class. Any help would be greatly appreciated! stochastic-processes share | cite | improve this question ...