Abstract
In this paper the comparison of results of optimal sensor placement with the use of binary and multi-valued diagnostic signals is given. The exoneration assumption was introduced and its effects were discussed. The influence of multi-valued diagnostic signals on several fault isolability metrics were discussed. The optimal sensor placement problem under budgetary constraints is formulated. A branch-and-bound algorithm solving this problem is described. It is used in context of three tanks system with 25 possible diagnostic signals.
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