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Math Help - moment generating function of a binomial random variable

  1. #1
    Junior Member
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    moment generating function of a binomial random variable

    Hey guys, I am trying to wrap my head around this problem. I understand everything except how they get to a certain point. Here is the problem:

    Derive the moment generating function of a binomial random variable and then use your result to verify the formulas for the mean and variance given in the text.

    the books solution:




    The red arrow in the picture is where I am lost. I can not figure out how they got from the left side of the arrow to the right. Can someone help me out?

    Thanks
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  2. #2
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    Mar 2012
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    Bowling Green, KY
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    Re: moment generating function of a binomial random variable

    Use the binomial theorem with a=pe^t and b=1-p.

    You should be able to figure it out from there.
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