Proof of the Hockey-Stick Identity: $\sum\limits_{t=0}^n \binom tk = \binom{n+1}{k+1}$

Imagine the first $n + 1$ numbers, written in order on a piece of paper. The right hand side asks in how many ways you can pick $k+1$ of them. In how many ways can you do this?

You first pick a highest number, which you circle. Call it $s$. Next, you still have to pick $k$ numbers, each less than $s$, and there are $\binom{s - 1}{k}$ ways to do this.

Since $s$ is ranging from $1$ to $n+1$, $t:= s-1$ is ranging from $0$ to $n$ as desired.

We can use the well known identity $$1+x+\dots+x^n = \frac{x^{n+1}-1}{x-1}.$$ After substitution $x=1+t$ this becomes $$1+(1+t)+\dots+(1+t)^n=\frac{(1+t)^{n+1}-1}t.$$ Both sides of these equations are polynomials in $t$. (Notice that the RHS simplifies to $\sum_{j=1}^{n+1}\binom {n+1}j t^{j-1}$.)

If we compare coefficient of $t^{k}$ on the LHS and the RHS we see that $$\binom 0k + \binom 1k + \dots + \binom nk = \binom{n+1}{k+1}.$$

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This proof is basically the same as the proof using generating functions, which was posted in other answers. However, I think it is phrased a bit differently. (And if it is formulated this way, even somebody who has never heard of generating functions can follow the proof.)

This is purely algebraic. First of all, since $\dbinom{t}{k} =0$ when $k>t$ we can rewrite the identity in question as $$\binom{n+1}{k+1} = \sum_{t=0}^{n} \binom{t}{k}=\sum_{t=k}^{n} \binom{t}{k}$$

Recall that (by the Pascal's Triangle), $$\binom{n}{k} = \binom{n-1}{k-1} + \binom{n-1}{k}$$

Hence $$\binom{t+1}{k+1} = \binom{t}{k} + \binom{t}{k+1} \implies \binom{t}{k} = \binom{t+1}{k+1} - \binom{t}{k+1}$$

Let's get this summed by $t$: $$\sum_{t=k}^{n} \binom{t}{k} = \sum_{t=k}^{n} \binom{t+1}{k+1} - \sum_{t=k}^{n} \binom{t}{k+1}$$

Let's factor out the last member of the first sum and the first member of the second sum: $$\sum _{t=k}^{n} \binom{t}{k} =\left( \sum_{t=k}^{n-1} \binom{t+1}{k+1} + \binom{n+1}{k+1} \right) -\left( \sum_{t=k+1}^{n} \binom{t}{k+1} + \binom{k}{k+1} \right)$$

Obviously $\dbinom{k}{k+1} = 0$, hence we get $$\sum _{t=k}^{n} \binom{t}{k} =\binom{n+1}{k+1} +\sum_{t=k}^{n-1} \binom{t+1}{k+1} -\sum_{t=k+1}^{n} \binom{t}{k+1}$$

Let's introduce $t'=t-1$, then if $t=k+1 \dots n, t'=k \dots n-1$, hence $$\sum_{t=k}^{n} \binom{t}{k} = \binom{n+1}{k+1} +\sum_{t=k}^{n-1} \binom{t+1}{k+1} -\sum_{t'=k}^{n-1} \binom{t'+1}{k+1}$$

The latter two arguments eliminate each other and you get the desired formulation $$\binom{n+1}{k+1} = \sum_{t=k}^{n} \binom{t}{k} = \sum_{t=0}^{n} \binom{t}{k}$$