Abstract:A novel observer-based approach for fault detection and location is proposed to detect and locate sensor faults and/or actuator faults in a multi-input multi-output stochastic system. To find fault locations, the original system is divided into several subsystems by the number of sensors in the system; each of which is made insensitive to a specified sensor fault while sensitive to other sensor faults. Furthermore, for each subsystem, an observer is designed with the observer innovation being made insensitive to specified actuator fault while sensitive to other actuator faults. Thus, from the statistics of the observer innovation, sensor faults and/or actuator faults can be located by logic inferring.