During installation, no error in the Test Connection option on the Database Configuration window

I have never received this error before. Why am I getting this error and how can I fix it?

Symptoms

While installing Product Master, if you provide the database home of another version of DB2® than the one on which the Product Master database is created and you select the Test Connection option, an error does not display.

Causes

This issue occurs if you have more than one version of Db2 installed. In that case if you enter the database home of the older version of Db2 and all the other parameters of the latest Db2 version, the Test Connection is still established successfully because the database home is not used while establishing connection to the database.

Resolving the problem

While installing Product Master, make sure that you specify the correct database home. Also, avoid installing multiple versions of Db2.