'Number of Planets' option strangeness

Is the 'number of planets' option working properly? The last few games I've set it to a low setting ... and about half the stars have four/five planets, and about half have NONE. Does the option determine the odds of a star having planets, or the number of planets? Are these games just a freak of averages, or is this how it's supposed to be?

I chose 'low planets' and 'lots of habitable' because I wanted to have one or two planets per star average and the majority of them being habitable, rather than four/five average and most uninhabilitable.
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I have mine set on abundant inhabitable, rare planets, and commom stars and it seems to work the way you want it.