Final answer:
Cold ambient temperature affects indicated altitude by causing the altimeter to read higher than the actual altitude. Pilots correct for this using temperature correction tables provided in the instrument approach procedure.
Step-by-step explanation:
Cold ambient temperature affects indicated altitude because colder air is denser than warmer air, causing an altimeter to read higher than the actual altitude. To correct for this, pilots use temperature correction tables provided in the instrument approach procedure. The tables include corrections based on the difference between the actual temperature and the reference temperature.