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!