You have found a layer package. What do you need to do before using it in ArcMap?

To utilize a layer package in ArcMap, it is essential to first unpack the layer package. A layer package is essentially a file format that contains the layer definition along with the associated data, such as symbology and settings. Unpacking the layer package extracts its contents, allowing you to access the layers and their necessary components directly within the ArcMap environment.

This process is crucial because simply trying to use the layer package in its compressed form would not provide the application the necessary access to the individual layers and the underlying data. After unpacking, the layers can be easily added to the map and utilized for various analyses and visualizations.

In contrast, the other options do not align with the appropriate steps needed to properly access and utilize a layer package. Exporting it to a shapefile is not necessary since the package is designed for seamless use within GIS applications without conversion. Geocoding and adding it to a mosaic dataset also pertain to different processes that do not directly relate to the initial step of unpacking the layer package itself.