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The numbers we normally use are represented with the decimal sistem. That means, its digits go from 0 to 9. However, they can also be represented with the binary sistem, which only has 0 and 1. In this case, the number 5 would be 101 for example.
The important thing in this game is to know how to convert binary numbers into decimal ones. Therefore we need to look at all the 1 (or LEDs turned on in the case of the game). The values attribued to the position of every 1 need to be added. They are, looking from right to left: $2^0, 2^1, 2^2, 2^3… (1, 2, 4, 8 …)$.
Example: We have the number 1101. To convert it, we calculate $2^0 + 2^2 + 2^3 = 1 + 4 + 8 = 13$.
In the case of this game, all the 0 are represented by LEDs turned off and the 1 by LEDs turned on. The players who manage to convert the given numbers fastest win.