It automatically determines the maximum number of clusters by the parameters selected in the processing. This process typically has the effect of producing so many clusters that the resulting classified image becomes too cluttered and, thus, more difficult to interpret in terms of assigned classes. Examine the resulting image when just 6 clusters are specified. The light buff colors associate with the marine waters but are also found in the mountains where shadows are evident in the individual band and color composite images. Red occurs where there is some heavy vegetation.
Dark olive is found almost exclusively in the ocean against the beach.
The orange, green, and blue colors have less discrete associations. Try to make some sense of the color patterns as indicators of the ground classes you know from previous paragraphs. A conclusion that you may reach is that some of the patterns do well in singling out some of the features in parts of the Morro Bay subscene. But, many individual areas represented by clusters do not appear to correlate well with what you thought was there. Unfortunately, what is happening is a rather artificial subdivision of spectral responses from small segments of the surface.