Large companies have the option of limiting their growth, but does doing so lead to higher profitability? The table below gives the profitability for a sample of twenty-one top-ranked companies, where profitability is expressed in terms of annual profit as a percentage of total company assets. The firms are divided into three groups by size of assets—$50 billion or less, between $51 and $100 billion, and over $100 billion. Test the hypothesis that small- and medium-size companies are as profitable as large companies. Letα=0.10.
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