Matlab's double precision numbers are in binary form, and therefore cannot represent the quantity 0.9500 exactly. Using binary notation the closest it could come to that number would be:
.11110011001100110011001100110011001100110011001100110
since it is restricted to a maximum significand (mantissa) of 53 bits. The exact binary expression for 0.9500 would be an infinitely long string analogous to, say, the infinite string for 1/3 in decimal: 1/3 = 0.33333333333333333 ....
When eight such inexact numbers representing 0.9500 are added together one-at-a-time with rounding to 53 bits at each step and the sum divided by 8 the accumulated error is sufficient to show up as a difference in the least significant bit:
.11110011001100110011001100110011001100110011001100111
That least significant bit has a value of 1.1102e-16, which is what you observed.
