I'm sure it's similar to the explorer I drive.
Scenario 1: If you reset the MPG, small changes in driving have a big impact on MPG. For example, if you grandpa drive on the freeway for 5 miles after resetting, your MPG might be 22 or something. Just say 22. After those 5 miles you get off the freeway and drive like a 19 year old (crazy), your MPG will rapidly decline.
Scenario 2: You reset the MPG 500 miles ago and have only driven freeway. Your current average MPG is 22. You get off the freeway and drive crazy again. Your average MPG will very slowly decline.
I would imagine it's a rolling average. If I were an engineer at Stellantis (I'd probably be Brazilian, but that's beside the point) I would give it a rolling average equivalent to 1 tank of gas... so whatever that is... 350 miles?