The interior temperature is measured by an integral interior temperature sensor located on the bottom of the heater/air conditioning operating unit.
Actually, that is your temp sensor for the inside temp.
When you set your right slider to X degrees, it senses when the temp has reached that setting and modulates your heating/cooling to keep it at that temp.
+1. What they both said...
This is the very reason I love to talk about bad things in front of my Xbox One's Kinect Camera.Just as long as it is not a surveillance device for NSA . . .