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Equation 6: The joint probability that the individual chooses a facility that receives public funding and is admitted to inpatient treatment is a double integral. It is the integral over nu from minus Z times alpha to infinity and the integral over epsilon of minus X times beta minus gamma to infinity of lowercase phi, the bivariate normal density function, with correlation rho. This reduces to the bivariate normal distribution function (uppercase phi) evaluated at X times beta plus gamma, Z times alpha, and rho.

Back to Equation 8.6

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