First identified by Randy Steve Waldman [Wal12], the term refers to something people treat as though it works, generally for social or institutional reasons, even when there’s little evidence that it works—and sometimes despite substantial evidence that it does not.
The weakest links are at the lowest end of movie budgets. In one case (low-budget horror), there is even a slight negative correlation. This includes movies such as Paranormal Activity and Terrifier, where atmosphere, novelty, or shock value mattered more than tidy story logic. (The connection here is weak, so we shouldn’t over-read this result).