That's one way of doing it but I think it's required for us to have an images folder. In which case you'd put all your images in a folder called "images" and write is in the src as "images/picture.jpg". Rather play it safe and stick to the tut letter in this case because it isn't that hard to change it
You're right Barry, it is of good practice to do it that way, putting your images in the images folder, but I think at the end of the day, it depends on your preference.
Just make sure that you know how to create folders and sub directories for files and images on any hosting site, and the their file locations, also the related issues that it might have.