Which formula accurately represents how to determine load factor?

The formula for load factor is defined as the ratio of average demand to maximum demand. This signifies the relationship between the average electrical load over a specified period and the peak load during that same period.

A higher load factor indicates that the electrical system is being utilized more efficiently, meaning that the average demand is closer to the maximum demand. This efficiency is crucial because it can lead to reduced costs in terms of generating and distributing electricity.

In contrast, if the formula were structured differently, such as multiplying average demand by maximum demand or adding these values together, it would not yield a meaningful ratio that represents efficiency or utilization of the electrical system. Instead, these operations would produce a figure that does not accurately reflect the relationship between average and peak consumption. Thus, focusing on the division of average demand by maximum demand allows for a proper understanding of load factor in electrical systems.