A woman comes to the doctor and says, "Doctor, I think I have cancer." The doctor checks it out. "It’s all in your head," the doctor says. "Phew," said the woman. "A bunch of tumors, all in your head."
It's All in Your Head
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Explanation
The humor comes from a misunderstanding. The woman thinks 'it's all in your head' means she doesn't have cancer. The doctor uses 'it's all in your head' as a literal statement about the location of the tumors, which is a very bad diagnosis.