Bigger on the Inside?

Team: 
The Turtles
Topic: Solid Geometry
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Homework can be difficult. Especially when you don't see the point of it. But math can actually be helpful. For example, a 4 inch pencil can't fit into 2 1/2 inch box. Can it?

Common Core Standards: 8.G.7
Problem #: 
23 (2013-2014)
Problem Difficulty Level: 5 [?]