please explain me the state diagram and how the output is derived from the present and next state with an example...

 

Not really how it works. There are a number of references you can use, starting with your textbook. You might also look at this site's E-book coverage of finite state machines:

http://www.allaboutcircuits.com/vol_4/chpt_11/5.html

At the bottom there is a link specifically to state diagrams.

If you have problems with a specific exercise (whether it be homework, something from the E-book, something you found on the web, or just something you dreamed up), then come here and post the problem and your thoughts and efforts to solve it. We will then help you identify where you are going astray and get you back on the right track.

 

Thank you so much....... but plz can you explain much more about the output column in the given example...

 

What example? I'm not a mind reader.