For us it is the root of our Hadoop client directory which contains the following:
drwxr-xr-x 8 {user} {group} 4096 Oct 27 19:44 ./
drwxr-xr-x 3 {user} {group} 4096 Oct 27 23:04 ../
drwxr-xr-x 2 {user} {group} 4096 Oct 27 19:44 bin/
drwxr-xr-x 2 {user} {group} 4096 Oct 27 19:44 conf/
drwxr-xr-x 3 {user} {group} 4096 Oct 27 19:44 lib/
drwxr-xr-x 2 {user} {group} 4096 Oct 27 19:44 libexec/
drwxr-xr-x 4 {user} {group} 4096 Oct 27 19:43 share/
drwxr-xr-x 3 {user} {group} 4096 Oct 27 19:44 usr/
```
Similar to where you would set $HADOOP_HOME and then add $HADOOP_HOME/bin to your path if you wanted to be able to say "hadoop ..."
If you need concrete examples you can look at the docker image construction or final result:
Dockerfile with pertinent line highlighted (you can also see what is unzipped that location later in the file)
Tom