An integrated approach for outlier detection and data reconciliation i
s discussed. It is shown that outliers can be identified by directly e
xamining the measurement distribution. In our approach, a non-linear l
imiting transformation which operates on the data set is utilised to e
liminate or reduce the influence of outliers on the performance of the
conventional data reconciliation. Monte Carlo study shows that the pr
oposed approach provides better results than the conventional approach
in the presence of outliers. When no outlier exists, it provides as g
ood a performance as the conventional approach. (C) 1998 Elsevier Scie
nce Ltd. All rights reserved.