Table B-6 gives data on the number of new business incorporations (Y) and the number of business failures (X) for the United States from 1984 to 1995.
a. What is the average value of new business incorporations? And the variance?
b. What is the average value of business failures? And the variance?
c. What is the covariance between Y and X? And the correlation coefficient?
NUMBER OF NEW BUSINESS INCORPORATIONS (Y) AND NUMBER
OF BUSINESS FAILURES (X), UNITED STATES, 1984-1995

d. Are the two variables independent?
e. If there is correlation between the two variables, does this mean that one variable causes the other variable? That is, do new incorporations cause business failures, or vice versa?

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YEAR 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 634,991 664,235 702,738 685,572 685,095 676,565 647,366 628,604 666,800 706,537 741,778 766,988 52,078 57,253 61,616 61.111 57,097 50,361 60,747 88,140 97,069 86,133 71,558 71,128