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What Carve is saying (please correct me if I'm wrong) is that the sensor is not a very comprehensive sensor. It uses a pretty primitive method to guesstimate (educated guess) when one should change their oil. It is a guesstimate because it measures the conductivity of the oil and uses that value to plug into a formula (or algorithm) that BMW derived to determine the oil change interval.
The attached was screencapped from that BMW document you attached
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