1. A method for detecting in-range sensor failures in a gas turbine engine, the method comprising the steps of: providing a component level model of a plurality of engine components, the component level model generating a plurality of estimated operating parameters and quality parameters; sensing a plurality of operating parameters associated with the plurality of engine components; comparing the plurality of sensed operating parameters to the plurality of estimated operating parameters of the component level model; generating a set of engine component quality parameters based on the comparison of the plurality of sensed operating parameters to the plurality of estimated operating parameters; storing a library of anomalous patterns, each pattern in the library of anomalous patterns comprising a plurality of known quality parameters corresponding to the generated set of engine component quality parameters; and identifying a malfunctioning sensor in response to the generated set of engine component quality parameters matching at least one of the anomalous patterns.