The state diagram begins like that of the previous solution. However, when we get a third 1 input, we go to state D. From D, a 0 input produces a 1 output; a 1 input gets us to a new state, E. Sometimes, we think of state A as nowhere, that is, we are looking for the first 1 to get started on the successful path to a 1 output. In that case, state E is worse than nowhere, since we must first get a 0 before we can even begin to look for three 1’s. The complete state diagram is shown next.