The number K of customers that arrive at Jay’s supermarket in a given day has the PMF
\,\displaystyle p_K\left (k\right )=\frac{\lambda^k e^{-\lambda}}{k !} \quad k=0,1,2, \ldotsIndependently of K , the number of items N that any customer purchases from the supermarket has the PMF
\,\displaystyle p_N\left (n\right )=\frac{\mu^n e^{-\mu}}{n !} \quad n=0,1,2, \ldotsDetermine the mean and the z-transform of the PMF of \,\displaystyle Y, the total number of items that the store sells on an arbitrary day.
Let K=k, and let N_i denote the number of items purchased by customer i, \,\displaystyle 1 \leq i \leq k. Then
\,\displaystyle \begin{aligned} \left.Y\right\vert _{K=k} & =N_1+N_2+\cdots+N_k \\ G_{Y \mid K}\left (z \mid k\right ) & =E\left[z^{Y \mid K}\right]=E\left[z^{N_1+N_2+\cdots+N_k}\right]=E\left[z^{N_1} z^{N_2} \cdots z^{N_k}\right] \\ & =E\left[z^{N_1}\right] E\left[z^{N_2}\right] \cdots E\left[z^{N_k}\right]=\left[G_N\left (z\right )\right]^k \\ G_Y\left (z\right ) & =\sum_{k=0}^{\infty} G_{Y \mid K}\left (z \mid k\right ) p_K\left (k\right )=\sum_{k=0}^{\infty}\left[G_N\left (z\right )\right]^k p_K\left (k\right ) \\ & =G_K\left (G_N\left (z\right )\right ) \end{aligned}Since \,\displaystyle G_K\left (z\right )=e^{\lambda\left (z-1\right )} and \,\displaystyle G_N\left (z\right )=e^{\mu\left (z-1\right )} , we have that
\,\displaystyle G_Y\left (z\right )=\exp \left (\lambda\left (e^{\mu\left (z-1\right )}-1\right )\right.