This paper presents a novel approach to model-based diagnosis. The app
roach addresses the two main problems that have prevented model-based
diagnostic techniques from being widely used: computational complexity
of abduction and inadequacies of device models. A model for automated
diagnosis is defined that combines (1) deduction to rule out hypothes
es, (2) abduction to generate hypotheses, and (3) induction to recall
past experiences and account for potential errors in the device models
. A review of the three forms of inference is provided, as well as a d
etailed analysis of the relationship between case-based reasoning and
induction. The proposed model for diagnosis is used to characterize di
agnostic errors and relate them to different types of errors in the de
vice models. Experimental results are then described and used to asser
t the practicality and the usefulness of the approach. The model prese
nted in this paper yields a practical method for solving hard diagnost
ic problems al a reasonable computational cost and provides a theoreti
cal basis for overcoming the problem of partially incorrect device mod
els.