In the current fiscal year, the Puerto Rico Treasury department estimates that 5% of high net worth individual tax returns would be fraudulent. That is, they will contain errors that are deliberately made to deceive the government. Although these errors are often well hidden, the tax department audits 5 random returns to see if they are fraudulent.

a. What is the probability that exactly 3 fraudulent statements will be discovered?

What is the probability that at least 2 fraudulent statements will be discovered?