-Remember, the name or label of a state diagram is NOT the output of the state diagram. Just because a state is named "one" does not mean it has to output a "one". It doesn't even have to be the first state. It's like a state being named "Dog" does not have to output a dog in the same way. And there is no such thing as the number dog as far as the order of the state.
-Different states can output the SAME output. What makes a state unique is it's output and the other states your current state can send you to. So if two states have the same output, have different next states, then they cannot be combined to the same state.
For example:
STATE NAME - OUTPUT
one - 0
two - 1
three - 0
four - 3
The state named 1 doesn't have to output a 1- that's just it's name. You might want to rename the state label so it starts from zero:
zero - 0
one - 1
two - 0
three - 3
Or you could jsut rename the states alphabetically:
A - 0
B - 1
C - 0
D - 3
If I wanted to, I could name the states in reverse order:
Four - 0
Three - 1
Two - 0
One - 3
My preference is to name a state after what it does rather than an order because in state machines were states can branch, the states don't really have an order anymore since any state can jump to any other state.
Output First Zero - 0
Output One - 1
Output Second Zero - 0
Output Three - 3