Concept:
Hidden Markov Models are probabilistic models used for sequence analysis. In bioinformatics, they are useful for gene prediction, protein family detection, and sequence annotation.
Step 1: Check Assertion (A).
Simple motif searches look only for fixed patterns. Gene prediction requires modelling coding regions, non-coding regions, start sites, splice sites, and transitions among states. HMMs can handle these complex patterns better.
\[
A \text{ is correct}
\]
Step 2: Check Reason (R).
HMMs use hidden states, transition probabilities, and emission probabilities. This allows them to model biological sequences statistically.
\[
R \text{ is correct}
\]
Step 3: Check explanation.
Because HMMs include state transitions and probabilistic modelling, they can outperform simple motif searches in gene prediction.
\[
\therefore \text{Correct Answer is (A)}
\]