Within-cluster sum of squares (WCSS), also called cohesion or inertia, measures how far observations lie from the centroids of their assigned clusters. Lower WCSS indicates more compact, homogeneous clusters; higher WCSS indicates greater spread. section 2.3.2
Use WCSS to compare candidate cluster counts, but interpret it alongside practical constraints:
- Calculate WCSS for several values of k and plot each value against k. section 2.3.3
- Look for an elbow, or sharp kink, where adding clusters produces diminishing improvement. section 2.3.3
- Check business logic, cluster sizes, computation cost, and maintainability before finalizing the number of clusters. section 2.3.3
Figure 2.10 The elbow method to find the optimal number of clusters. The circle shows the kink. However, the final number of clusters is dependent on business logic, and often we merge/split clusters based on this. The ease of maintaining the clusters also plays a crucial role.
The elbow plot shows how WCSS changes as k increases and highlights the kink used to propose a cluster count. section 2.3.3
