cardinality of entity means max numbers of relationship it can participate..
if E1 : E2 is 1 : N i.e. one value in E1 is associated with one or more values is E2
the reason is hidden in your statement....one value of E1 is associated with one or more value of E2 i.e cardinality(E1)=n,
similiarly one value of E2 is associated with only one value of E1 i.e cardinality(E2)=1