From my understanding, a bad transformer may have high internal resistance. This causes a lower output voltage than approx. 120V. Say it has an internal resistance of 1ohm and supplies 10 amps, then the voltage drop across its internal resistor will be 10 V, and the actual output voltage is 120 - 10 = 110.
Most of the articles I found online just say this increase in internal resistance is from age, overloading, and impure oil.
My first question is, does age and overloading somehow increase overall internal resistance over time, and how? Do the wires heat up and have carbon build-up that slowly increases resistance (just thinking out loud)
So I would assume some smooth drop in output voltage as the current slowly increases. Looking at actual data from a bad transformer, the voltage does decrease as more current is supplied, but the out voltage has these deep sharp sags that increase in size. I can't find anywhere explaining these fast chaotic drops in voltage. Any explanation for these deeper more random drops? Here is a plot.