Bandwidth allocation is a fundamental problem in communication networks where bandwidth needs to be reserved for requests (connections) to guarantee a certain quality of service (QoS) for the request. Guaranteeing QoS to the request means that the user can explicitly speclfy certain requirements for a request such as bandwidth. The problem of bandwidth allocation is further intensified when the requested bandwidth exceeds the available unused bandwidth and so not all requests can be completely served. This research examines on-line bandwidth allocation, where the decision for acceptance or rejection of the request has to be made when future requests and their arrival statistics are not known. A request can be defined as a flow of informatio...