An innovative approach to data analysis for complicated stochastic systems
involves modeling based on flowgraph methods. This article introduces flowg
raph and associated saddlepoint methods for problems in systems engineering
and reliability. The methods are especially useful for analyzing time-to-e
vent data and finding predictive distributions of such data. Applications t
o a cellular-telephone network are given. Advantages of flowgraph models ov
er direct simulation are presented. Methods of likelihood construction for
incomplete data are given.