Hello Steven,
Thanks for posting you question on E2E. Resolution of any temperature sensor is a fixed value and it doesn't improve when the temperature range is smaller. Like you pointed out, TMP006 local temperature sensor has a resolution of 0.03125 but this value will not change because its fixed for a range(-40 to 125degC) and does NOT vary with the range specifications of an application.
As far as as the accuracy is concerned, it will typically be around 0.2-0.3degC for your measurement temperature range. ts looks like you are interested local temperature measurement, if so I would recommend you to consider TMP112. You may find the product data sheet at:
http://www.ti.com/lit/ds/sbos473b/sbos473b.pdf
You can achieve accuracy ~0.1degC for temperature range of 20 to 50degC by calibrating the part, as explained in page 14 of the datasheet.
I hope to have clarified your questions, do let me know if you have any further questions or concerns.
Best Regards,
Abhi Muppiri
Applications Engineer
MHR- Sensing Products
Texas Instruments
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