The pole is at \(z=1.2\), outside the unit circle, so the system is not stable. Believing that a coefficient greater than one suffices is a common error, but the condition depends on the pole's position.
The discrete transfer function \(H(z)\) is the Z-transform of the impulse response \(h[n]\) of a discrete-time LTI system, with \(H(z)=Y(z)/X(z)\) under zero initial conditions.
\[H(z)=\sum_{n=-\infty}^{\infty} h[n]\,z^{-n}\]
More practice problems: discrete transfer function