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I was thinking to consider model a simple system like a water storage tank with two pumps and two valves aimed at maintaining a certain set point. I am uncertain about where to begin. Should I start by modeling water tank system using differential equations that describe the rate of change of water level in the tank to generate data representing normal operating conditions. Then I would introduce faults in the form of sensors biases to generate faulty data. I am not aware on how one can model bias to accurately represent the behavior of a sensor. Also, how can I apply regression techniques to predict the water level if I lack actual measurements?