With reference to Example 9.10, for what values of C_w and C_d will Strategy 2 be preferred?

Example 9.10

Suppose a manufacturer incurs warranty costs of C_w for every defective unit shipped and it costs C_d to detail an entire lot. The sampling inspection procedure is to inspect n items chosen at random from a lot containing N units, and to make the decision to accept or reject on the basis of the number of defective units found in the sample. Two strategies are to be compared, as follows:

Number of Sample Defectives, x Strategy Strategy 2 0 Accept Accept Accept Reject Accept Reject Reject Reject 3 or more