Answer
0.662, about 66.2% of the shipments will be accepted and about 33.8% will be rejected.
Work Step by Step
P(accepted)$=P(X=0)+P(X=1)={40\choose 0} \cdot (0.03)^{0}\cdot (0.97)^{40}+{40\choose 1} \cdot (0.03)^{1}\cdot (0.97)^{39}=0.296+0.366=0.662$. About 66.2% of the shipments will be accepted and about 33.8% will be rejected.