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Yes, it is correct but the performance is better than that. Also, the in-built temperature sensor is only for the ADC demo purpose and serves nothing else.
The specified accuracy of the sensor is indeed quite wide. This is a limitation of our production calibration of the sensor w.r.t absolute temperature, not a limitation of the stability/linearity/repeat ability of the sensor itself.
Because of this, you could possibly find some use in this if you generate additional calibration data in your system production flow. For instance, you could create an alarm near the max temperature your system was tested at by recording the reading while doing this testing.
