A Holiday Company is about to block book hotel rooms for the coming season. The number of holidays actually booked is equally likely to be any number between 0 and 99 (for simplicity rather than reality). Each room booked costs $500 and they can sell them for $700.

1. How many rooms should the company book if unsold rooms have no value?

2. How many rooms should it book if unsold rooms can be sold as last-minute bookings for $200 each?