How Database Status Affects Local Connections

The simplest connection scenario is when the database you want to connect to resides on your own machine.

If this is the case:

Is the database already running on a server? If so, you can specify fewer parameters in the Connect dialog. If not, identify the database file so that Interactive SQL can start it.
Are there multiple databases running on your machine? If so, identify the database to which you want Interactive SQL to connect. If there is only one database, Interactive SQL connects to it, and you do not need to specify it in the Connect dialog.