Apparatus, and an associated method, for analyzing operation of a multiple-state device, such as a vehicular automatic transmission under multiple-fault occurrence. An identifier identifies all possible path sequences of an initial state responsive to occurrence of all possible faults and all possible remediation actions. The paths are identified for a multiple-fault occurrence of two or more faults. For each of the possible paths, a hazard level is assigned, and the hazard levels are sorted to obtain preferred path sequences. Analysis of the possible paths and their associated hazard levels is made, and a state control scheme is formulated.