We know that $w_1=\frac{\sqrt{4w_{0}^2-b^2}}{2}$ and $(1+u)^{\alpha}=1+\alpha u + \mathrm{O}\left(u^2\right)$
I need to show that $\frac{w_1}{w_0}=1+\frac{\lambda}{N^2}+\mathrm{O}\left(\frac{1}{N^3}\right)$ such that $N=\frac{w_0}{b}$
We have:
$$\frac{w_1}{w_0}=\frac{\sqrt{4w_{0}^2-b^2}}{2w_0}=\sqrt\frac{{4w_{0}^2-b^2}}{4w_{0}^2}= \left(1-\frac{b^2}{4w_{0}^2}\right)^{1/2}= 1-\frac{1}{8N^2}+\mathrm{O}\left(\frac{1}{16N^4}\right) $$
But I am unable to get the expression $\mathrm{O}\left(\frac{1}{N^3}\right)$ What am I doing wrong?
Thank you
You are doing nothing wrong. Since $1/N^4$ is of smaller order than $1/N^3$, $1/N^4 = O(1/N^3)$.
More precisely, if $f(N) = O(1/N^4)$, then $f(N) = O(1/N^3)$. In addition, $f(N) = o(1/N^3)$, a stronger result.