C and D are equivalent; B and E are equivalent. Proof of equivalency of C, D using the basic definition of state equivalency: For any input seuquence applied to C, D which causes the FSM to remain in C, D (basically a string of 0's) the outputs are the same starting from either C or D. When the input causes the FSM to go to E or B, respectively, the output remains the same. An input of 0 applied to B or E, causes the same outputs and a return to C, D respectively. An input of 1 applied to B or E, causes the same outputs and a transition to the same state A. Any input sequence from this point onwards will obviously have the same output sequence irrespective of whether we were at B or E before reaching A. Thus from the above reasoning, any input sequence applied to C or D will either cause the states to circle between C, D, B, E producing the same outputs OR the FSM will at some ppoint go to state A and from that point onwards the outputs will be the same. Thus any input sequence of any length applied to C or D will result in the same output sequence. Thus C and D are equivalent. B and E are also equivalent and the proof of their equivalency is along similar lines as the above proof of C and D's equivalency.