In the circuit | zero, nihil, yeong > the input to CNOT gate is equal probabilities for |010> and |000> state vectors. After the CNOT gate the |010> state vector has been replaced by the |011> state vector since the |-1-> state of the 2nd qubit negated the |--0> state of the 3rd qubit, i.e. |010> -> |011>. CNOT creates entanglement between the 2nd and 3rd qubits in that after CNOT the 2nd qubit is the sames state as the 3rd qubit in each of the possible state vector outputs.