Answer:
0.4875
Step-by-step explanation:
For each student, there are only two possible outcomes. Either they are a graduate student, or they are not. The probability of a student being a graduate student is independent from other students. So we use the binomial probability distribution to solve this question.
Binomial probability distribution
The binomial probability is the probability of exactly x successes on n repeated trials, and X can only have two outcomes.

In which
is the number of different combinations of x objects from a set of n elements, given by the following formula.

And p is the probability of X happening.
Thirty-two percent of the students in a management class are graduate students.
This means that 
A random sample of 5 students is selected.
This means that 
Determine the probability that the sample contains fewer than two graduate students?

In which




0.4875 = 48.75% probability that the sample contains fewer than two graduate students