ELBOW METHOD · MODEL SELECTION
As the K value increases, WCSS (inertia) decreases because adding more clusters reduces the within-cluster variance. However, beyond a certain point, the marginal gain diminishes, and the plot exhibits an elbow shape. The optimal K is chosen at the elbow, where the reduction in WCSS becomes insignificant.
Switch K: Optimal Elbow (K = 3)Inertia: 8,081
Sweet spot: Every natural blob gets its own dedicated centroid. Inertia drops precipitously by ~72% down to 8,081. This is the optimal elbow point!