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This book illustrates the usefulness of estimation in engineering and science. It uses dynamic models to provide immediate results of estimation concepts with minimal reliance on mathematics. This second edition discusses a number of new topics, including higher order nonlinear filters, inertial navigation, and nonlinear stochastic processes. The authors cover prototype algorithms to stimulate the development and intelligent use of efficient computer programs. MATLAB is used throughout, with the code on a supporting website. In the appendices, the authors review statistics, optimization, probability, and matrix analysis.