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It all depends. You need 3 bits to get 8 potential States.

000

001

010

011

100

101

110

111

From top to bottom this counts from 0 to 7 in binary. In this example, the LSB for the sequence above would be 0, 1, 0, 1, 0, 1, 0 and 1. You really have to look at the overall decoding scheme. If you had a device with 7 inputs then you could assign each input to a specific segment. Depends on what you have to amswer your question precisely.

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