This question needs to be in a FAQ.
Making semiconductors (LEDs or Pentiums) involves
a lot of steps. And even though they control each step
as best as possible the end result is that the
characteristic of the semiconductors vary from wafer
to wafer, and even at different spots on the wafer.
If you measure the characteristics you will get a bell
curve: most of them clustered around a central point and
fewer above and below.
For Intel producing Pentium CPUs the speed of the chips
may vary from a low of 2.6 GHz to a high of 3.8 GHz
with most of the production clustered around 3.0 or 3.2
GHz (made up numbers only). So Intel prices each bin
differently to maximize their profit. There are other
characteristic they could bin by (say leakage power, or
operating power) but I don't know if they do that.
With LEDs customers care about brightness and colour:
a manufacturer making strip lighting doesn't want some
of the LEDs to be visibly brighter or dimmer, or have
a noticable different colour. So the LED manufacturers
bin by brightness and bin by colour.
In some applications the forward voltage drop (at a
specified curent) is important (e.g. flashlights) and
so they bin the LEDs by that characteristic too.
Semiconductor makers are always trying to improve their
processes to reduce the width of the bell curve, and to
shift the peak of the curve in the desired direction. But
there will still be variations, and as long as they
cause visible differences or functional differences the
semi maker will bin the parts.
Greg