1. A method for establishing at least one of an alert or an alert limit for monitoring a mechanical device, said method comprising: identifying faults that can be recognized by their effect on measured trends; determining a set of available sensors for monitoring said trends; acquiring and processing representative data to obtain a statistical characterization of said trends; determining a parameter variance for at least one alert test in accordance with said statistical characterization; analyzing Type I and Type II error risks and associated financial penalties to adjust parameters associated with the at least one alert test; and programming an automated alert system to utilize the adjusted parameters to identify measured trends of a mechanical device that are to be brought to the attention of a human analyst.