\documentclass{article}

\usepackage[usenames,dvipsnames]{color,xcolor}

\usepackage{tikz}
\usetikzlibrary{mindmap,backgrounds,shadows,trees,positioning,shapes,arrows,decorations}


\usepackage[active,tightpage]{preview}
\PreviewEnvironment{tikzpicture}
\setlength\PreviewBorder{1mm}

\usepackage{fontspec}
\setmainfont[Scale=1]{Linux Libertine}


\begin{document}

\begin{tikzpicture}

\tikzset{
statesty/.style={fill=blue!10},
lambdasty/.style={-latex,Green},
musty/.style={latex-,Red}
}

\def\radius{.6cm}





\draw  [statesty] (0,0) circle (\radius) node[] {0};
\draw  [statesty] (2,0) circle (\radius) node[] {1};
\draw  [statesty] (4,0) circle (\radius) node[] {2};
\node at (5.5,0) {...............};
\draw  [statesty] (7,0) circle (\radius) node[] {K-1};
\draw  [statesty] (9,0) circle (\radius) node[] {K};
\node at (10.5,0) {...............};

\draw[lambdasty] (0,.6) .. controls (0,1.2)and (2,1.2) .. (2,0.6) node[midway,above] {$\lambda$};
\draw[lambdasty] (2,.6) .. controls (2,1.2)and (4,1.2) .. (4,0.6) node[midway,above] {$\lambda$};
\draw[lambdasty] (7,.6) .. controls (7,1.2)and (9,1.2) .. (9,0.6) node[midway,above] {$\lambda$};


\draw[musty] (0,-.6) .. controls (0,-1.2)and (2,-1.2) .. (2,-0.6) node[midway,below] {$\mu$};
\draw[musty] (2,-.6) .. controls (2,-1.2)and (4,-1.2) .. (4,-0.6) node[midway,below] {$\mu$};
\draw[musty] (7,-.6) .. controls (7,-1.2)and (9,-1.2) .. (9,-0.6) node[midway,below] {$\mu$};

\end{tikzpicture}
\end{document}