Advanced Quantitative Methods
The elbow method is a heuristic used in cluster analysis to determine the optimal number of clusters for a dataset by plotting the explained variance against the number of clusters. This method helps to identify the point where adding more clusters yields diminishing returns, indicated by a bend or 'elbow' in the plot. It is an important technique for ensuring that the chosen number of clusters balances simplicity and accuracy.
congrats on reading the definition of elbow method. now let's actually learn it.