Not Enough Meaning
We tend to find stories and patterns even when looking at sparse data
Clustering illusion
Description
The tendency to erroneously perceive "streaks" or "clusters" in random sequences of events.
Clustering illusion in business decision
A sales manager might believe a particular region is experiencing a "hot streak" after a few quick sales, leading to over-investment, even if the sales were random occurrences.
Clustering illusion in personal life decision
You notice a pattern in randomly dealt cards while playing and think you're on a lucky streak.