True or False: Assumptions are necessary for forecasting numbers.

Assumptions play a crucial role in forecasting numbers because they provide the necessary foundation upon which predictions are built. Forecasting inherently involves making predictions about future events based on historical data, trends, and various external factors. These predictions can only be as reliable as the assumptions that underlie them.

When forecasters make assumptions, they are essentially stating what they believe to be true about the future based on available information. These assumptions could include factors like market trends, economic conditions, customer behavior, and potential changes in regulations. Without these assumptions, the forecasting process would lack direction and would be based purely on random data without context.

Furthermore, assumptions allow for a systematic approach to accounting for uncertainties. They help in delineating different scenarios, which can provide a range of possible outcomes. This is particularly important in environments that are dynamic and where changes can significantly impact results.

Therefore, asserting that assumptions are necessary for forecasting numbers highlights the importance of context and thoughtfulness in the forecasting process, making the statement true.