Finish the state graph for a moore network......

Help needed: I don't understand the concept so i need detailed explanation please. I have the solution but don't understand how to approach it. How would the values change if it were a mealy network?

A file has been attached explaining the problem.

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...iagram and the table are modified to complete the problem and attached in this posting.

We start at S0. regardless whether its state is 0 or 1, it will go directly to S1. The output F, as indicated in the state bubble S0, is 0 since the sequence is yet to be achieved.

The 2 possible sequence are:
0 _ _
1 _ _

Now, let's look at S1. When the state of S1 is 0, it will not go to S2. It is because the sequence form will be either 0 0 _ or 1 0 _, which will not achieve 111 or 011. So it will loop back to S1 until the state of S1 ...