When setting up a lighting system, the way in which the lights are connected can greatly impact their functionality. The two common methods of connecting lights are serial and parallel connection, each with its own advantages and disadvantages. In a serial connection, each light is linked in a sequence, causing the entire string of lights to go out if one light fails. In contrast, a parallel connection allows lights to remain lit even if one fails. Understanding the variances between serial and parallel connection can help in creating a more efficient and reliable lighting setup for any application.