1. A method for computing interval parameter bounds from fallible measurements, comprising: receiving a set of measurements z 1,..., z n, wherein an observation model describes each z i as a function of a p-element vector parameter x&equals;(x 1,..., x p ); storing the set of measurements z 1,..., z n in a memory in a computer system; forming a system of nonlinear equations z i −h(x)&equals;0 (i&equals;1,..., n) based on the observation model; and solving the system of nonlinear equations to determine interval parameter bounds on x.