“…This trade-off problem has been formulated in two ways: (1) given the FDR, minimize the FAR (Zhang and Ding, 2008), (2) given the FAR, maximize the FDR (Ding et al, 2000b). On the other hand, since nonlinear systems are more common in practice, observer based FD techniques for nonlinear systems have also been studied extensively (Frank, 1994;Hammouri et al, 1999;Ferrari et al, 2007;Narasimhan et al, 2007;Shumsky, 2007;Edelmayer et al, 2004). There are many works dealing with Lipschitz nonlinear systems (Pertew et al, 2007;Chen and Saif, 2007;Rajamani and Ganguli, 2004;Yaz and Azemi, 1998;de Souza et al, 1993;Xie et al, 1996;Abbaszadeh and Marquez, 2008), since, under some conditions, more general nonlinear systems can be transformed into Lipschitz nonlinear systems (Rajamani, 1998).…”