Diversity factor describes the relations between the peak load of an entire system and sum of the peak loads of its individuals consumers.
Diversity Factor:
It is the ratio of the sum of the individual peak or maximum demands of the consumers to the maximum or peak demand of the entire power station.
\[\color\red{Diversity\; Factor\;(FD)=\dfrac{sum\; of \;the\; individual \;peak\; or\; maximum\; demands\; of\; the\; consumers}{the \;maximum\; or\; peak \;demand \;of\; the\; entire\; power \;station}}\]