I think I understand...
The powered controller delivers 5v (or 7 to 9v) to the sensors (red and black). As compared to ground, the sensor voltage will vary between 0 and 5v, if working properly, as each magnet passes. There are 46 rows of magnets, so each sensor should reach 5v 46 times.
I assume then, if the voltage of one of the three sensors remains at 0v as the wheel is rotated, it is disconnected or damaged and must be repaired or replaced. Likewise, if the voltage of one of the three sensors reaches some voltage between 0 and the max (let's say, it always reaches only 4v), it has moved or is damaged and must be repaired or replaced. And, lastly, if the voltage of each sensor rises and falls to 5v in a consistent wave-like pattern, then you know the problem is not with the motor.
The only problem is that I don't have a voltmeter on hand. Could a similar test be conducted using LED's or small light bulbs instead of a voltmeter?
By the way, as it is, I can run the motor, but it makes strong knocking sounds and it doesn't rotate smoothly. Also, when I apply the throttle, the wheel won't move if it's in certain positions. I have to bump it forward (or back) from those dead spots to get it to spin.