Another book by Walter Savitch, Problem Solving with C++ 8e, also says it's a magic formula when early examples and exercises need it for proper output purposes but then explains it later on. I'm sure yours will too.
The default will truncate them, when no flags are set (e.g., cout.setf() sets flags). But as your topic post shows, if you have more than six digits you lose precision. As it might be better practice anyway, determine your significant figures and then set your flags and precision accordingly.