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Studying gas turbine degradation causes and their consequences helps to obtain profound comprehension in howperformance deterioration affects the dependent parameters and to explore relevant information about the nature of thefault signatures for fault diagnostics purpose. In this paper, the effects of compressor fouling, gas generator turbine erosion,and power turbine erosion on the engine dependent parameters were considered separately and together. In this regard,firstly, performance prediction model was developed to LM2500 engine using gas turbine simulation program. It was thenused to simulate the deterioration effects by means of artificially implanted fault case patterns. Comparison of the cleanand deteriorated measurement gives the deviation due to performance degradation. Accordingly, sensitivity order of the gaspath parameters to the corresponding performance deterioration was assessed. This helps to select the key parameters,which are crucial in the process of fault detection and isolation. The results showed that, in most of the cases, air mass flowrate, compressor delivery pressure and temperature, gas generator rotational speed, power turbine inlet pressure, andexhaust gas temperature showed significant deviations. Particularly, the compressor delivery pressure and exhaust gastemperature were the parameters highly influenced by all the fault cases. Moreover, faults that have similar impacts areidentified, in order to show the difficulty of gas turbine health assessment through direct observation to the measurementdeviations.