Final answer:
The state diagram design of a sequence detector that detects overlapping sequences of 4 'b0101' and asserts the output coincident with receiving the last bit of the pattern.
Step-by-step explanation:
The state diagram design of a sequence detector that detects overlapping sequences of 4 'b0101' and asserts the output coincident with receiving the last bit of the pattern can be created using a finite-state machine (FSM). Let's denote the states as S1, S2, S3, and S4. Starting from the initial state (S1), when the input transitions from 0 to 1, the FSM moves to state S2. Similarly, the FSM transitions to states S3 and S4 when the given input sequence continues as '010' and '101', respectively. When the FSM reaches state S4 and receives the last bit of the pattern (1), it asserts the output.