System and method for optimal sensor placement

A controller includes a memory that stores instructions and a processor that executes the instructions. The instructions cause the controller to execute a process that includes receiving sensor data from a first sensor and a second sensor. The sensor data includes a time-series observation representing a first activity and a second activity. The controller generates models for each activity involving progressions through states indicated by the sensor data from each sensor. The controller receives from each sensor additional sensor data including a time-series observation representing the first activity and the second activity. The controller determines likelihoods that the models generated a portion of the additional sensor data and calculates a pair-wise distance between each sensor-specific determined likelihood to obtain calculated distances. The calculated distances for each sensor are grouped, and a relevance of each sensor to each activity is determined by executing a regression model using the grouped calculated distances.