Many jurisdictions do surveys of the speeds actual traffic travels on a road before speed limit signs are placed, and set the limit at some legally defined point in the speed distribution.
The one I specifically remember was for a SF Bay Area city. Limits were set so that 85% of the traffic was measured to be below that speed, rounded to 5 mph. I knew this because locals had complained that the posted limits were too low, and the town was legally required to re-survey the traffic.
In the US, as with so many things, there is often a mix of city, county, state, and national laws that must be complied with.
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