That’s really close but not exactly correct.
A “person” location is determined by the likelihood that a device_tracker is giving accurate information.
for GPS trackers it will use the latest status location update from all the GPS trackers.
BUT, if there is a more specific tracker it will always use that instead no matter what the less specific trackers tell it.
an example is that using a router based tracker will override a GPS based tracker if the router based tracker shows the tracker as being “home”. And a ping based tracker will do the same.
I had that exact situation happen a couple of weeks ago when my Unifi router for some reason never released my wife’s phone as being connected to the router and, even tho she was out of the house for several hours, she always showed up as home in her “person” entity even tho all of the GPS based trackers (Life360 and the HA mobile app) showed the true location.