The bus and man can arrive in any time between 3:00 and 3:30.
Probability of man arriving before 3:25 = 5/6 as each 5 minute interval is equally possible for his arrival.
Probability of man arriving before 3:25 and catching the bus = 5/6 * 1/6 = 5/36 (as the probability for bus to come in any 5 minute interval is 1/6).
Probability of man to come after 3:25 = 1/6
Probability of man coming after 3:25 and catching the bus = 1/6 * 1/6 *x = x/36, where x is the probability that man comes first. Since both man and bus are equally likely to come first, x = 1/2, giving required probability = 1/72.
So, Probability that man catches the bus = 5/36 + 1/72 = 11/72.
Probability that he takes subway = 1 - 11/72 = 61/72 = 0.8472.