To solve this problem, we make use of the Binomial Probability equation. The formula is:
P = [n! / r! (n – r)!] p^r * q^(n – r)
where,
n = the total number of samples tested = 100
r = the total number of defective chips = 0
p = probability of being defective = 0.02
q = probability of not being defective = 0.98
Hence, substituting the values:
P = [100! / 0! (100 – 0)!] 0.02^(0) * 0.98^(100)
P = [1] * 0.02^(0) * 0.98^(100)
P = 0.1326 = 13.26%
Therefore there is a 13.26% probability that 0 defective chips will be found.