THE METHODOLOGY USED TO DETERMINE THE DROPOUT RATES FOR DYNAMOD II, A COMPUTERIZED MARKOV-CHAIN MODEL OF STUDENT AND TEACHER FLOWS OVER TIME, IS PRESENTED IN FIVE STEPS--(1) CALCULATING A DROPOUT RATE FOR MALE AND FEMALE ELEMENTARY STUDENTS AND FOR MALE AND FEMALE SECONDARY STUDENTS, (2) CALCULATING AN OVERALL RATE FOR MALES AND AN OVERALL RATE FOR FEMALES, (3) DETERMINING A PERCENT DISTRIBUTION OF DROPOUTS BY AGE, SEX, AND SCHOOL LEVEL, (4) SEPARATING THESE GROUPS INTO WHITE-NONWHITE COMPONENTS, AND (5) DIVIDING THE NUMBER OF DROPOUTS IN EACH CATEGORY BY THE NUMBER OF STUDENTS IN EACH CORRESPONDING CATEGORY TO OBTAIN THE FINAL DROPOUT RATES. (HW)