This report presents a summary description of the 1974-75 Michigan Cost-Effectiveness Study and its findings. The study was an effort to develop and implement evaluation techniques for determining what educational practices affect student behavior and what costs are associated with those practices. Overall purpose of the 1974-75 study was to continue development of the analytical techniques reflected in the cost-effectiveness model that was employed in the 1973-74 Michigan Cost-Effectiveness Study. A critical part of this continued development was an attempt to cross-validate the variables identified in the 1973-74 study. In addition, the 1974-75 study also sought to identify new variables related to student achievement and to investigate the relationships between achievement and various identified variables. Data for the study were collected from 25 Michigan school districts with highly successful compensatory education reading programs and 25 districts with highly unsuccessful programs. Within each of these districts, the highest and lowest achieving buildings were selected for study. The study focused on only those educational variables subject to control by the schools and did not examine variables such as race or socioeconomic status. (Author/JG)