Much of the recent euro currency crisis that struck Europe was attributed to the economy of Greece. George Papandreou, Greece’s prime minister, claimed that corruption was at the heart of the crisis. Transparency International is a global civil organization that reports on worldwide corruption.

The organization’s research indicated that the average bribe to a public service in Greece in 2013 was $1,596. To validate these findings, a random sample of 20 private sector transactions in 2013 was taken and each person was asked to report the amount of any bribe. The data are as follows and can also be found in the Excel file titled bribes.xlsx.

$0 $0 $3,100 $0 $1,100

$0 $1,800 $2,350 $2,800 $1,900

$0 $2,000 $2,300 $3,000 $2,800

$0 $2,000 $250 $2,350 $2,750

a. Construct a 95% confidence interval with these data to estimate the average bribe to a public service in 2013.

b. Do these results validate the findings of Transparency International?

c. What is the margin of error for this sample?

d. Why is this margin of error so large?

e. Verify your results using Excel.

AppendixLO1