The total number of subsets of a set with 5 elements is $2^5 = 32$.
The number of ways to choose a subset of size 3 from a set of 5 elements is $\binom{5}{3} = 10$.
The probability of choosing a subset of size 3 is the ratio of the number of favorable outcomes to the total number of outcomes:
$P(\text{subset of size 3}) = \frac{10}{32} = \frac{5}{16}$