I will explain you in brief relationship between Entity and DAO.
Consider an example of Online Ship Reservation System which consists of mainly two Entity
1.Admin - Performs add,modify,delete Ship details etc
2.User - Reserve ship tickets online,payment online etc.
In this scenario For Admin entity(add,modify,delete ship details - different kind of function this entity can perform) one AdminDAO is require which will consists of all functions that admin entity can perform.
This entity called from any java servlet class .
In short for each Entity one DAO is require.