No, this isn't normal. Sometimes you'll get a temperature that is right on the edge between two adjacent numbers, 70 and 71 for instance, and it might "jitter" a bit between those, but "spread" jitter isn't normal.
Did this continue after the until had been powered up for a while (30+ minutes)? Only thing I can think of is that maybe after first powering up there is a period where some components in the thermostat are heating up and an equilibrium hasn't been hit yet. Also make sure that the two air holes on the left side, top and bottom, of the thermostat are clear and that the device is oriented upright (like it would be attached to the wall). This is necessary to make sure there is airflow through the thermostat and there isn't any "heat trapping" effect throwing things off.
Please give us a call (315-299-3589) so we can do a bit more troubleshooting and arrange a replacement if necessary.