A position diagnostic test for a shift-by-wire system having a shift lever movable along a shift path, a first position sensor and a second position sensor configured to each sense a position of the shift lever, and to generate a corresponding first position signal and second position signal, respectively, the first position signal having a first x-coordinate value and a first y-coordinate value, and the second position signal having a second x-coordinate value and a second y-coordinate value, the position diagnostic test comprising performing, by a controller, a rationality test for each of a plurality of test coordinate values that include the first x-coordinate value, the second x-coordinate value, the first y-coordinate value, and the second y-coordinate value, wherein any one of the tested coordinate values fails the respective rationality test if at least one predetermined condition exists.