Jon P. answered 08/24/15
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Honors math degree (Harvard), extensive Calculus tutoring experience
From the way the problem is constructed, "best location" must mean the location that results in the lowest average travel distance, which would be the center of population, or center of mass if you treated the population numbers as "mass."
So start by putting each city in a 2-dimensional coordinate graph. Since the locations of all the cities are stated relative to city A, it makes sense to put A at the origin.
Now, to calculate the center of mass you treat each dimension separately -- x (east-west) and y(north-south). Calculate the "moment" for each city, by multiplying the population of the city times its x and y positions. You would have a table:
x y pop. x-moment y moment
A 0 0 75000 0 0
B -3 4 180000 -540000 720000
C 6 -12 240000 1440000 -2880000
D 0 -15 105000 0 -1575000
Now add the x and y moments. You get (900000, -3735000)
Now divide the moments by the total population, which is 600000. That gives you (1.5, -6.225). That is the center of population in your coordinate system, which is what you were looking for -- 1.5 miles east and 6.225 miles south of city A.