DYNAMOD II IS A COMPUTERIZED MARKOVIAN-TYPE FLOW MODEL DEVELOPED TO PROVIDE ESTIMATES OF THE EDUCATIONAL POPULATION OF STUDENTS AND TEACHERS OVER SELECTED INTERVALS OF TIME. THE POPULATION IS CROSS-CLASSIFIED INTO 108 GROUPS BY SEX, RACE, AGE, AND EDUCATIONAL CATEGORY. THIS NOTE DESCRIBES THE METHODOLOGY USED IN DYNAMOD II, COMPARES DYNAMOD II STUDENT AND TEACHER PROJECTIONS TO 1970, AND AGE, SEX, AND RACE PROJECTIONS WITH THOSE OF THE OFFICE OF EDUCATION, AND MAKES SPECIAL ANALYSES OF BIRTH VARIATIONS, VARIATIONS IN RETENTION RATES OF STUDENTS AND TEACHERS, AND STUDENT-TEACHER RATIOS. INCLUDED AMONG THE MORE IMPORTANT FINDINGS ARE--(1) DYNAMOD II IS A SUITABLE REPRESENTATION OF THE EDUCATIONAL POPULATION FOR PLANNING PURPOSES, (2) THE MODEL IS USEFUL FOR EXPLORING THE EFFECTS OF CHANGES IN THE BIRTH AND DEATH RATES IN THE EDUCATIONAL POPULATION, (3) THE MODEL IS USEFUL FOR EXAMINING THE IMPACT ON THE EDUCATIONAL POPULATION OF POLICIES DESIGNED TO KEEP MORE STUDENTS IN SCHOOL, (4) THE GREATEST IMPACT OF A CHANGE IN STUDENT RETENTION OCCURRED IN THE COLLEGE SECTOR, (5) THE TEACHING SECTOR WAS FOUND TO BE MORE SENSITIVE TO CHANGES IN RETENTION RATES THAN THE STUDENT SECTOR, AND (6) STUDENT-TEACHER RATIOS WERE FOUND TO BE MORE SENSITIVE TO CHANGES IN THE TEACHER RETENTION RATES THAN WERE STUDENT RETENTION RATES. (HW)