What defines an assumption in the context of business analysis?

In the context of business analysis, an assumption refers to an expected outcome or condition that has not been proven or validated but is accepted as true for the purposes of planning and decision-making. Identifying assumptions is crucial because they can significantly impact project scope, risk management, and overall success. For instance, a project might assume that a certain technology will function as intended without thorough testing; if this assumption is wrong, it could lead to project delays and additional costs.

The other options represent different concepts in business analysis. Known facts that guide decision-making are related to established truths or data points that can be relied upon. Confirmed requirements from stakeholders are actual needs or specifications that have been agreed upon, which differ fundamentally from assumptions that remain unproven. Lastly, a resource allocation method pertains to the strategy of distributing resources efficiently, which is distinct from the concept of making assumptions during the analysis phase. Thus, the correct definition aligns closely with the understanding of assumptions in business analysis as unverified expectations.