Finance & investing
Investors and analysts frequently back-test trading strategies across decades of market data, then highlight the specific combination of indicators that would have yielded the highest returns — without accounting for the thousands of indicator combinations that failed. This leads to overfitted models that perform well historically but collapse on new data.
Medicine & diagnosis
Epidemiologists face constant pressure from communities reporting apparent disease clusters. When boundaries are drawn around observed cases after the fact rather than defined in advance, nearly any region can appear to have an abnormally high rate of illness, leading to false alarms, wasted resources, and public fear about non-existent environmental hazards.