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It would stand to reason that the computer is simply calculating how much fuel is pumped thorough the injectors together with how far that makes the vehicle go (based upon the revolutions of the wheel) to work out it's equation on what the MPG is.
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Don't forget that the injectors of the Diesel engine are different to the gas engine injectors. The readout will be false if this isn't programmed into the system. Anyways, the most accurate way will always be to measure it yourself, although this might require some Math to figure out the distance driven if the tire size and gearing have been changed. So Math does come in useful outside of school
