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it means when you have a real life problem that is relate to math.
Real world problems are basically about stuff you do every day, but put into a question when doing boring math work. Now, if you're wanting to know about life itself, well that's like war and what not. Stuff that stresses you out, that's what real world problems are. :(
All area word problems are real life applications, meaning that you need to know it FOR real life, therefore you can always refer to them to see when.
A real world example of what? Math in general? Geometry nets? Name the math concept and it'll be easier for readers to give you a real world example.
Unless you are an electrical engineer or a math teacher, every number you will ever use in a real world situation will be a real number.