Functional networks are a general framework useful for solving a wide range
of problems in probability, statistics, and engineering applications. In t
his article, we demonstrate that functional networks can be used for many g
eneral purposes including (a) solving nonlinear regression problems without
the rather strong assumption of a known functional form, (b) modeling chao
tic time series data, (c) finding conjugate families of distribution Functi
ons needed for the applications of Bayesian statistical techniques, (d) ana
lyzing the problem of stability with respect to maxima operations, which ar
e useful in the theory and applications of extreme values, and (e) modeling
the reproductivity and associativity laws that have many applications in a
pplied probability. We also give two specific engineering applications-anal
yzing the Ikeda map with parameters leading to chaotic behavior and modelin
g beam stress subject to a,given load. The main purpose of this article is
to introduce functional networks and to show their power and usefulness in
engineering and statistical applications. We describe the steps involved in
working with functional networks including structural learning (specificat
ion and simplification of the initial topology), parametric learning, and m
odel-selection procedures. The concepts and methodologies are illustrated u
sing several examples of applications.