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I think it depends on what sort of geographic diversity you add. I mean, a lot of b-school applicants come from major US cities. So even in California, being from NY is probably not that interesting.
Being from a region that produces fewer students is more likely to be interesting. On one essay, I had a question about what diversity I bring. Among other more important points, I talked about being from a small town in the Midwest and how that affects my definition of community and teamwork.