This schema is used in data warehouse models where one centralized fact table references number of dimension tables so as the keys (primary key) from all the dimension tables flow into the fact table (as foreign key) where measures are stored. This entity-relationship diagram looks like a star, hence the name.
Consider a fact table that stores sales quantity for each product and customer on a certain time. Sales quantity will be the measure here and keys from customer, product and time dimension tables will flow into the fact table.