Using Attribution Theory, this study examined the effect of exam failure on attrition. Previous Attribution Theory studies indicate that while ascription of failure to lack of ability leads to abandoning the activity, ascription to lack of effort does not necessarily lead to the same outcome. It was, therefore, hypothesized that lower-ability failers would be more likely to dropout than higher-ability failers. Data analysis of CLU students' records and questionnaires revealed that although failure generally tends to lead to attrition, it does so significantly more for lower- rather than higher-ability students. (Author)