In this paper, the variability of tensile mechanical properties of silver birch timber is investigated and models for the prediction of tension strength and stiffness are developed. Through visual inspections and non-destructive tests, various strength and stiffness related indicators are identified. Destructive tension tests are subsequently performed for the determination of strength and stiffness. On each timber board, strains are measured at four localized regions, whereby, the stiffness of knot sections and clear wood sections are determined. Variability in strength, stiffness, density, knots, grain angle, and annual ring width are investigated along with the relationships between them. A hierarchical model is developed for the prediction of timber board stiffness and the reduction of stiffness due to knots. Models for the prediction of timber board strength and knot cluster strength are developed according to equality and inequality information of the failed specimens, by means of censored regression analysis. Results indicate suitable global and local predictions for silver birch timber, given the dynamic modulus of elasticity, median slope of grain, and knot geometries.