[ MD = \textTotal Connected Load \times \textDemand Factor ]
Comprehensive Guide to Maximum Demand Calculation in Electrical Systems maximum demand calculation
Diversity factor accounts for the fact that not all loads are used simultaneously. A residential area with 10 homes does not require a transformer sized for [ MD = \textTotal Connected Load \times \textDemand
[ MD = \left( \sum_i=1^n (Load_i \times Demand\ Factor_i) \right) \times Diversity\ Factor ] maximum demand calculation