Efficient Frontier analysis calculates the curve that plots an objective value against changes to a requirement or constraint. A typical use is for comparing portfolio returns against different risk levels so that investors can maximize return and minimize risk. If you want to use this type of analysis, you need to define a range of values for a requirement or constraint bound. For instructions and more information, see Setting Up Efficient Frontier Analysis in OptQuest.
One use for Efficient Frontier analysis is to allocate funds among a portfolio of investments in the most efficient way. The Description page of Portfolio Revisited EF.xls describes this technique. Efficient Portfolios, following, offers the concepts behind it.