True or False: An ArcGIS notebook can only reference data located on the computer where it is running.

An ArcGIS notebook can indeed reference data stored in various locations, not just on the computer where the notebook is running. This functionality allows users to work with data from cloud storage, shared networks, or even other GIS services. The flexibility in data referencing is one of the benefits of using ArcGIS notebooks, as it enables integration of datasets that may be distributed across different environments, facilitating broader analytical capabilities.

While the answer indicates a limitation that does not exist, it is essential to note that using data from external sources requires appropriate access permissions and paths. Therefore, the assertion that an ArcGIS notebook can only reference data on the local machine is incorrect. The ability to access remote data enhances the usability and functionality of ArcGIS notebooks in various analytical workflows and collaborative projects.