This paper presents a new approach to the test design of analog circuits, c
alled characteristic observation inference (COI), The COI method considers
parametric as well as catastrophic faults. A strict distinction between the
operational environment, defined hy the specifications of the circuit, and
the test environment, defined by the test configuration and the test equip
ment, is introduced. A parametric fault model is developed that combines ci
rcuit specifications, statistical parameters reflecting parametric faults,
and measurements of the circuit under test, These measurements are called c
haracteristic observations. For each specification, a test inference criter
ion is computed using feature extraction and logistic discrimination analys
is. From a set of such criteria the satisfaction or violation of the specif
ications can be inferred from characteristic observations. Based on these r
esults, additional test criteria for catastrophic faults are determined usi
ng test set compaction. Moreover, measurement noise and parasitic effects,
which crucially influence the test design, are systematically considered, a
nd a physically interpretable sampling strategy is presented. The COI metho
d applied to two different test designs yields very good results with respe
ct to parametric faults as well as to catastrophic faults.