what does "my.package.dir" mean?

I download a R markdown template. And at the beginning of .rmd file, it has such codes:

# Setup package dir
my.package.dir <- "[dir to package folder]"

# Define directories
my.dir <- "/Users/zhaoyao/Documents/AAE 772/hw3"
hw.dir <- "/Users/zhaoyao/Documents/AAE 772"
# Set directory

What does this mean? What should I put in brackets? What's the differences among these three dir?

I put my data set in the my.dir. Is this correct?

We have no way to know without seen for what is used later in the code, you have to share more information with us.

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