Constraints for Efficient Frontier Analysis

Figure 1 - Constraint Settings - Efficient Frontier Analysis

To perform an Efficient Frontier Analysis, a special type of constraint must be specified with multiple alternative constraining values.

To set a constraint for Efficient Frontier Analysis, first select Efficient Frontier as the Analysis Type in the Model window. Then check the Use for Efficient Frontier in the Constraint Settings window to display the options for defining the list of constraining values (Figure 1, right).

The options for Efficient Frontier constraints are based on the value selected for the List of Constraining Values pulldown. The options are:

Figure 2 - Efficient Frontier Constraint - Table of Values

Between Minimum and Maximum - The list of constraining values is defined by a minimum value, a maximum value, and the number of values to include between them (including both the minimum and maximum values). Intermediate values are set at equal intervals.
- Minimum Value - The lowest value possible for the constraint.
- Maximum Value - The highest value possible for the constraint.
- # of Values (Including Min and Max)
Table - Manually enter a list of values (Figure 2, right).
In Excel Range - Select an Excel range that includes the list of constraining values.

To identify the efficient frontier, Evolver performs multiple optimizations to find the optimal value for each possible value of the constraint. In the example in Figure 2, Evolver would perform an optimization at each of the constraining values and then graph the optimal solution across the possible constraining values.