Reliability of sensor data is highly indispensable in order to obtain high standards of transportation system efficiency, safety and sustainability. By combining statistics and various network modeling techniques, the research aims at solving this question and providing greater modeling flexibility to incorporate spatial correlation of networked data. Finally, the aim is to program an open source software that can be handed to the transportation agencies to apply the research for practical purposes. Prior to creating the mathematical model, however, various challenges are required to be answered, such as spatial correlation of networked data due to underlying principles of traffic flow, measurement errors, and methodology to transfer knowledge to practice. In the project, with the help of statistical approaches, transportation network modeling techniques will be deployed to address new challenges to sensor health monitoring problems.