In this paper, a new automated test generation and concurrent test point selection algorithm for specification based testing of analog circuits is presented. The proposed approach co-optimizes the construction of a multi-tone sinusoidal test stimulus and the selection of the best set of test response observation points. The circuit specifications are predicted accurately from the test response using a prior algorithm. This prediction is based on a statistical regression based mapping of the test response waveform to the specifications of the circuit under test. The test generation and test point selection process tries to maximize the accuracy of specification prediction using the above mapping. Pass/fail test decisions are made using the predicted specifications. Simulation results show excellent performance of the proposed algorithms.