Consider a first-price auction for an object with two bidders. Each bidder is known to have a valuation of $70 with probability .3 and a valuation of $100 with probability .7. Bidding occurs simultaneously and bids are in increments of $10. Suppose you are a participant in this auction. You believe your rival is bidding according to:

Bid 60 if your valuation is 70, and

bid 80 if your valuation is 100.

1. What should your bid be if your valuation is 70? Show your work.
2. What should your bid be if your valuation is 100? Show your work.