Abstract
This paper formulates a novel probabilistic graphical model for noisy stimulus-evoked MEG and EEG sensor data obtained in the presence of large background brain activity. The model describes the observed data in terms of unobserved evoked and background factors with additive sensor noise. We present an expectation maximization (EM) algorithm that estimates the model parameters from data. Using the model, the algorithm cleans the stimulus-evoked data by removing interference from background factors and noise artifacts and separates those data into contributions from independent factors. We demonstrate on real and simulated data that the algorithm outperforms benchmark methods for denoising and separation. We also show that the algorithm improves the performance of localization with beamforming algorithms.