A probabilistic data signal processor used to determine health of a system is described. Initial probability distribution functions are input to a dynamic state-space model, which iteratively operates on probability distribution functions, such as state and 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 to a probabilistic sampler, which estimates one or more parameters using the posterior, which is output or re-sampled and used as an input to the dynamic state-space model in the iterative algorithm. In various embodiments, the probabilistic data signal processor is used to filter output from any mechanical device using appropriate physical models, which optionally include chemical, electrical, optical, mechanical, or fluid based models. Examples to valve bearings and pipe systems are provided.
