A model-free hybrid fault diagnosis technique is proposed to improve the performance of single and double fault detection and isolation. This is a model-free hybrid method which combines the extended parity space approach (EPSA) with a multi-resolution signal decomposition by using a discrete wavelet transform (DWT). Conventional EPSA can detect and isolate single and double faults. The performance of fault detection and isolation is influenced by the relative size of noise and fault. In this paper; the DWT helps to cancel the high frequency sensor noise. The proposed technique can improve low fault detection and isolation probability by utilizing the EPSA with DWT. To verify the effectiveness of the proposed fault detection method Monte Carlo numerical simulations are performed for a redundant inertial measurement unit (RIMU).