1.Graph the following network:

• 1 = {,,,,,,,}
• 1= {,,,,,,,}

Use the network from question 1 to answer the following questions.

i)Suppose a node in the network is infected with a disease that will transmit along an edge with a probability of 0.4. Would we expect the disease to spread throughout this network? Explain.

ii)Now suppose each node in the network represents a bank, and one of the banks declares bankrupty. Bankruptcy will spread to a bank if it shares at least 40 percent of its edges with bankrupt banks. Which bank(s) could be the first to become bankrupt and NOT lead to a financial contagion that would bankrupt the entire network? Explain.