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The text explains how to determine the degree of a polynomial function based on the differences between data points. By analyzing the differences, specifically the first, second, and third ones, a pattern emerges where a constant difference indicates the degree of the polynomial. In the example provided, the differences between data points are calculated to find the degree of the polynomial. Key points include finding differences between consecutive data points, identifying a constant difference, and using this information to determine the degree of the polynomial function.
