What is assumption method?

The assumption method is a technique used in various fields, including finance, economics, and research, where certain conditions or variables are assumed to be true for the purpose of analysis or modeling. This method helps simplify complex problems by allowing analysts to focus on key factors while ignoring less critical elements. However, the validity of the conclusions drawn from this method heavily depends on the accuracy of the assumptions made. If the assumptions are flawed, the results may not accurately reflect reality.