WCSS is a measure developed within the ANOVA framework. It gives a very good idea about the different distance between different clusters and within clusters, thus providing us a rule for deciding the appropriate number of clusters.
The plot will resemble an “elbow,” and the goal is to find the point where the decrease in WCSS slows down, forming an elbow-like shape.
Elbow numbers are the point where the rate of decrease in WCSS starts to flatten out
The rationale behind the elbow method is that
Rationale: as you increase the number of clusters (K), the WCSS will generally decrease because each cluster becomes smaller. However, there is a point where the addition of more clusters provides diminishing returns in terms of reducing WCSS. The elbow point represents a good balance between capturing the variance in the data and avoiding excessive fragmentation.