This thesis introduces the concept of implementing greyscale analysis, also known as intensity analysis, on endobronchial ultrasound (EBUS) images for the purposes of diagnosing peripheral lung tumors. The statistical methodology of using greyscale and histogram analysis allows the characterization of lung tissue in EBUS images. Regions of interest (ROI) will be analyzed in MATLAB and a feature vector will be created. A feature vector of first-order, second-order and histogram greyscale analysis will be created and used for the classification of malignant vs benign peripheral lung tumors. The tools that were implemented were MedCalc for the initial statistical analysis of receiver operating curves (ROC), Multiple Regression and MATLAB for the machine learning and ROI collection. Feature analysis, multiple regression and machine learning methods were used to better classify the malignant and benign EBUS images. The classification is assessed with a confusion matrix, ROC curve, accuracy, sensitivity and specificity. It was found that minimum pixel value, contrast and energy are the best determining factors to discriminate between benign and malignant EBUS images.