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Honestly no, I'm not sure. I've questioned it too. The on-board computer calculates it. I'm gonna push him to measure it himself. I've seen the display. It calculates an average every so often, so you're not getting up-to-the-minute info, but it usually hangs around 37mpg.
Ohhh the on board mpg indicator is flaky in many cars. Even when every sensor is working perfectly I swear most manufacturers rig them to give false readings showing better mileage (to give a false sense of consumer satisfaction).
For an accurate reading you will need the old pen and paper method and keep a log of gas put in and odometer readings every time it is filled up.