Correct Answer - Option 2 : FALSE
Voltage regulation is the change in secondary terminal voltage from no load to full load at a specific power factor of load and the change is expressed in percentage.
E2 = no-load secondary voltage
V2 = full load secondary voltage
Voltage regulation for the transformer is given by the ratio of change in secondary terminal voltage from no load to full load to no load secondary voltage.
Voltage regulation \(= \frac{{{E_2} - {V_2}}}{{{E_2}}}\)
For a good transformer must have voltage regulation as low as possible.