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Demand factor is a measure used in electrical engineering to quantify the maximum demand of a load compared to the total connected load. It is defined as the ratio of the maximum load on the system at any time to the total connected load. The demand factor helps utility companies and engineers in designing and assessing the capacity of power systems, as it provides insight into how much of the total capacity will actually be used. A lower demand factor indicates that not all connected loads are being utilized simultaneously, which can lead to more efficient system design and operation.