State Variables
The internal state variables are the smallest possible subset of system variables that can represent the entire state of the system at any given time. The minimum number of state variables required to represent a given system, is usually equal to the order of the system's defining differential equation. If the system is represented in transfer function form, the minimum number of state variables is equal to the order of the transfer function's denominator after it has been reduced to a proper fraction. It is important to understand that converting a state space realization to a transfer function form may lose some internal information about the system, and may provide a description of a system which is stable, when the state-space realization is unstable at certain points. In electric circuits, the number of state variables is often, though not always, the same as the number of energy storage elements in the circuit such as capacitors and inductors. The state variables defined must be linearly independent; no state variable can be written as a linear combination of the other state variables or the system will not be able to be solved.
Read more about this topic: State Space Representation
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