  We introduce a 2-round stochastic constraint-satisfaction problem, and show
that its approximation version is complete for (the promise version of) the
complexity class AM. This gives a `PCP characterization' of AM analogous to the
PCP Theorem for NP. Similar characterizations have been given for higher levels
of the Polynomial Hierarchy, and for PSPACE; however, we suggest that the
result for AM might be of particular significance for attempts to derandomize
this class.
  To test this notion, we pose some `Randomized Optimization Hypotheses'
related to our stochastic CSPs that (in light of our result) would imply
collapse results for AM. Unfortunately, the hypotheses appear over-strong, and
we present evidence against them. In the process we show that, if some language
in NP is hard-on-average against circuits of size 2^{Omega(n)}, then there
exist hard-on-average optimization problems of a particularly elegant form.
  All our proofs use a powerful form of PCPs known as Probabilistically
Checkable Proofs of Proximity, and demonstrate their versatility. We also use
known results on randomness-efficient soundness- and hardness-amplification. In
particular, we make essential use of the Impagliazzo-Wigderson generator; our
analysis relies on a recent Chernoff-type theorem for expander walks.
