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When quality control pulls a misprinted bill from the production run, it is replaced with a note having a star at the end of the serial number. This is done so the first bill in each packet of 100 has a serial ending with '00' and the last bill is '99'. Currency collectors like these Star Notes and some are quite valuable in Crisp Uncirculated condition.
AnswerStar notes are legal currency bills printed to replace damaged notes during a printing run.
For example: The mint must print 100 Ten dollar bills. During the printing process, five of those bills are misprinted and can not be put into circulation. In order to print the full order of 100 bills, they must make up for the five bad bills. Since it is not cost efficient to go back and exactly match serial numbers of the damaged bills, they are replaced with star notes.
Star notes are replacement notes. If a sheet of notes does not pass inspection during the printing process, that sheet is pulled out and destroyed, and it is replaced with a sheet of star notes. There is no correlation between serial numbers whatsoever.
Some star notes are relatively rare, and if kept in pristine condition can gain value over time. Only 11% of money are 'star notes.' The value of a star note can vary a lot, or only slightly, from the value of a similar standard note. It depends on the bill's date and condition.
