I have been going through this example to understand how to use generating functions.
Here is the question:
How many 6-letter permutations can be formed using only the letters of the word, MISSISSIPPI?
And here is the answer:
$\begin{equation} 6!\left(1 + \frac{x}{1!}\right)\left(1 + \frac{x}{1!} + \frac{x^2}{2!}\right)\left(1 + \frac{x}{1!} + \frac{x^2}{2!} + \frac{x^3}{3!} + \frac{x^4}{4!}\right)^2 \end{equation}$
Now, we wrote the term (1+x) because we only have 1 M. Again, we wrote the 2nd term because we have 2 P's, and so on. I understand why the exponential terms are written this way. However, I don't really understand how the exponential terms we wrote are derived from the generating functions.
For a sequence $a_n$, we can define an exponential generating function
$F(x)=\sum_{}a_n\frac{x^n}{n!}$.
If I tried to solve this problem, I would try to find an equation for $F(x)$, then find the coefficient of $\frac{x^n}{n!}$ so that I could find a value for $a_n$ (like when we want to find explicit formulas using a recursive formula). But that is not what we did in the previous solution, isn't it? We expanded each exponential summation until the number of occurrence of each letter and we multiplied them. I don't get the logic/intuition of this process.