The open circuit and short circuit tests are used to determine the transformer's efficiency, voltage regulation, and circuit constant, among other things. Because these tests are carried out without any actual loading, relatively little electricity is required for the test.
Because they are determined under open-circuit conditions, Z-parameters are also known as "open-circuit impedance parameters." That is, the input and output currents flowing through the ports of a two-port network are Ix=0, where x=1, 2.
An open circuit is a channel for electrical current that has been broken due to a broken switch or frayed cable. A string of electric lights that doesn't work if one bulb goes out is an example of an open circuit.
A short circuit has zero resistance, but an open circuit has unlimited resistance. The voltage in the short circuit is zero, but the voltage in the long circuit is maximal.
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