A probabilistic digital signal processor is described. Initial probability distribution functions are input to a dynamic state-space model, which operates on state and/or model probability distribution functions to generate a prior probability distribution function, which is input to a probabilistic updater. The probabilistic updater integrates sensor data with the prior to generate a posterior probability distribution function passed (1) to a probabilistic sampler, which estimates one or more parameters using the posterior, which is output or re-sampled in an iterative algorithm or (2) iteratively to the dynamic state-space model. For example, the probabilistic processor operates using a physical model on data from a mechanical system or a medical meter or instrument, such as an electrocardiogram. Output of the physical model yields an enhanced output of the original data, an output to a second physical parameter not output by the medical meter, or a prediction, such as an arrhythmia warning.