Assume your company would like to group customers into segme…
Assume your company would like to group customers into segments based on their purchasing behavior. Along with a colleague, you decide to run k-Means to create the segments. You and your colleague are discussing how many clusters to use, and you decide to create the Elbow plot (using WSS only) to help with the decision. You present the plot to your colleague, and he suggests using k = 8 as final number of clusters, because that is the point where the WSS is at its lowest. Do you agree with your colleague? Why or why not? In your answer, make sure to clearly explain what the WSS captures and how to use the elbow plot to figure out a “good” number of clusters.