The given information is:
- p=0.05 (the probability of success)
- n=12 (the sample size)
We can apply the binomial distribution formula to find the probabilities. The formula is:

q is equal to 1-p, so:

a. Find the probability that at least 3 people believe that they have seen a UFO:
This is equal to:

Let's find the individual probabilities:

So, the P(x>=3) is:

The probability that at least 3 people believe that they have seen a UFO is 0.0196.
b. P(3 or 4 people believe that they have seen a UFO):
This is given by:

Let's find the individual probabilities:

The probability that 3 or 4 people believe that they have seen a UFO is 0.0194.
c. P(exactly 2 people believe they have seen a UFO)
This is equal to:

The probability that exactly 2 people believe they have seen a UFO is 0.099.