If it is a VRM type then basically it is a generator. So when the teeth go by, it makes an AC waveform. So there would be 2 tests:

1) Static resistance: With wheel not moving measure DC resistance. I would guess it should be in the range between 100 ohms and 500 ohms but that is just a guess. 0 and infinity would be bad.

2) Dynamic test: Set meter to AC volts and spin wheel. Assuming it passed the first test it should produce some voltage and the voltage should be higher as you spin faster. If you set the meter for DC volts you will see basically nothing. So make sure it is set on AC volts for that test.

__________________
1998 C230 330,000 miles (currently dead of second failed EIS, yours will fail too, turning you into the dealer's personal human cash machine)
1988 F150 144,000 miles (leaks all the colors of the rainbow)
Previous stars: 1981 Brava 210,000 miles, 1978 128 150,000 miles, 1977 B200 Van 175,000 miles, 1972 Vega (great, if rusty, car), 1972 Celica, 1986.5 Supra