The temp if fluctuating wildly, from about 1/3 to below Normal.
I’m afraid I don’t find this clear. From 1/3 of what (the whole range? the “Normal” part of the range?) to how far below Normal? (Kind of an academic question, the fact that’s it’s fluctuating is probably all that matters.)
With significant temperature fluctuation, the logical first step is to check the coolant level (cold engine only). If it’s low, top it up and see if the symptom is gone. Next, find and fix the leak.
Check the drive belt and make sure it’s driving the water pump properly (no slippage).
Fluctuation is not a common symptom of a faulty thermostat, however it’s often cheaper and easier to replace a thermostat than to test it.
I’ll check out the temp sensor if this doesn’t work.
A bit of terminology clarification: sensor is properly used to refer to devices that send signals to the electronic control system (computer); sending unit or sender is properly used to refer to devices that send signals to gauges or warning lights. (Some late model cars do not have temperature sending units, using the coolant temperature sensor to inform the computer, and the computer to operate the gauge, but the 94 Taurus does have a temp sending unit.) Unfortunately, many parts countermen do not seem to know this, so to avoid confusion say “sending unit for the gauge” or “sensor for the computer.”
To test the sending unit, you need an ohmmeter, resistance specifications, and some way to measure or at least approximate the actual temperature at the sending unit. Again, it’s probably easier and cheaper to replace it than to test it. However, if you want to test it, first find a repair manual with the resistance specs (I question whether the non-factory manuals readily available have this degree of detail). Also be aware that if there is a problem with the gauge system, it could be the sending unit, the gauge itself, or any of the wiring or connections to those two items. Testing the sending unit won’t necessarily be sufficient to evaluate what’s happening.
Take care to make sure that the system is full of fluid, without air pockets. Thermostat replacement often results in getting a fair amount of air in the system, which will be a problem.