1. A system for health prognosis of component using a graphical probabilistic model, the system comprising one or more processors that are specifically configured to perform operations of: utilizing a graphical probabilistic model formed of: a first layer having at least one component node representing the health of at least one component; a second layer having at least one health observation node representing at least one health observation; and a third layer having at least one usage node representing at least one usage observation; collecting component failure data; generating normalized histograms of failures with a set of usage bins and a set of health bins, wherein the histograms provide failure densities for at least one component failure and at least one health observation failure; computing at least one parameter for the graphical probabilistic model using component and health observation failure densities; computing a component health prognosis using a reasoning engine; and outputting a component health prognosis.