Paul:
The Oxygen sensor tells the Computer in your vehicle if there is a rich or lean condition. The Computer then responds accordingly adding more or reducing the amount of fuel delivered to the T.B.I or Injectors or whatever the case may be. A bad oxy sensor can rob your engine of power and/or cause it to use excessive fuel. I would check the connections at the sensor, make sure they are secure and the concetivity is good.
Typicaly these sensors are designed to go for around 70,000 miles {some go a lot more} But that doesn`t mean yours hasn`t gone bad.
As far as Leads go there are four different sensors
a one lead, a two lead, a three lead, and a four lead,
One, two and Three lead sensors use the sensor body as earth
Two and three lead sensors have pre heaters and the extra leads are for that purpose { a two lead uses the body for preheat earth,One lead for the preheater and one for the actual sensor. A three lead sensor uses one wire for Preheater Voltage and one for earth, the third lead is the actual sensor lead.
The four lead sensor uses one lead for earth through the wireing harness, One for sensor voltage, One for preheater earth and one for preheater voltage.
There is a home test you can do but typicaly it is a hit and miss type thing at best.
Typicaly the home test goes something like this, connect your dcvm to the sensor lead {good luck sorting out which lead it actually is} and a suitable ground, start the engine, you should read 0.1-0.3v {until your engine comes up to op temp} once up to normal op temp accelerate the engine up to around 2,500 rpm, the reading should fluctuate between 0.5 and 0.8v {some say 0.9v} {<span style="text-decoration: line-through">Lower</span> Higher Voltage indicates a rich condition,}
You really need an O2 sensor Monitor to get an accurate accounting of whats going on with it. {it could be what is termed "Lazy" or "slow" or not working at all or it could be the preheater portion not functioning if so equiped.
The Oxy sensor isn`t the only sensor that can cause excessive fuel consumption there is a M.A.F. sensor {Mass Air Flow} Normaly located in the intake system and the T.P.S. {Throttle Position Sensor} Normaly located on the throttle body somewhere {near where the butterfly valve is}.
One or both of these sensors can be feeding the computer faulty readings also.
Another thing is to ensure there are NO VACUUM LEAKS, they too can cause faulty sensor reading and increased fuel consumption.
In My Opinion, your best bet is a diagnostics reading by a reputable shop before you go willy nilly replacing sensors that may or may not be bad. The diagnostic test will tell you excatly what and where the problem is if any.
I hope this gives you a basic understanding of how Oxygen sensors work.
F.W.I.W.
Kerry