A 2x2 matrix is invertible if its determinant is non-zero. The total number of 2x2 matrices with entries 0 or 1 is \( 2^4 = 16 \). To find the number of invertible matrices, we identify and subtract the count of non-invertible matrices (those with a determinant of zero) from the total. The probability \( P(E) \) is determined by the ratio of invertible matrices to the total matrix count.
Final Answer: \( \frac{5}{8} \).