Volume 2, the second of eight publications developed by the Intercultural Development Research Association (IDRA) as part of the "Texas School Dropout Survey Project," focuses on the issue of the computation of a dropout rate. Three important factors which influence the mathematical computation of a dropout rate are identified: time frame, range of grade levels, and student accounting procedures. Each of these is discussed briefly and its impact on the dropout rate is examined. A technique for estimating a cohort dropout rate through longitudinal attrition calculations developed by IDRA to calculate a standardized dropout rate for the state of Texas and the school districts within Texas is described, and the formula and results generated by the use of the formula are presented. Descriptions of district-level, county-level, education service center region, Job Training Partnership Act service delivery area, and statewide analyses are illustrated with 72 data tables. Enrollment and attrition data by district and by county are appended. (NB)