Knight will sit out the Hoosiers' game today against Iowa.
"Indiana University and Coach Knight have advised me that this penalty has been accepted and there will be no appeal of my decision," Big Ten Commissioner Wayne Duke said.
"I have no discretion regarding the penalty to be imposed regarding these violations. The penalties are expressly set forth in the conference's Sportsmanlike Conduct Code."
Angered by the officiating, Knight, 44, hurled a chair across the court during the first five minutes of last Saturday's game at Bloomington, Ind. Indiana lost, 72-63.
The school did not penalize Knight for the incident.
Indiana spokesman Kit Klingelhoffer said the school had no comment on the suspension. He said the university had been notified of the Big Ten's decision before the announcement.
Asked what he thought Knight's reaction might be, Klingelhoffer said: "I really don't know."
He said Knight, who coached the U.S. basketball squad to a gold medal at the Los Angeles Olympics, and the team were preparing to fly to Iowa City for the game.
Duke said that Knight, winner of seven Big Ten and two NCAA titles, violated three rules regarding abusive action, provocative actions toward game officials and criticism of those officials.
For abusive action, Duke said, penalties call for a public reprimand for the first offense, or a one-contest suspension in the event of a flagrant violation.
"Should Coach Knight engage in subsequent unsportsmanlike conduct, he will be automatically suspended from coaching for up to two additional games depending on the violation committed," Duke said.
During the Purdue game, Knight became angry when officials called three quick fouls on Indiana players. After he was given a technical for cursing at an official, he picked up a chair from the Indiana sideline and threw it across the court. The chair passed a few feet from one of the officials.
Knight then was given a second technical. After he continued to quarrel with officials, he was given a third technical and ejected from the game.
The next day, Knight, who has a long record of controversy, apologized for the blowup.
"I do not think my action in the Purdue game was in any way necessary or appropriate," he said in a statement last Sunday.
Duke said he made his decision to suspend Knight after reviewing a report from IU, Knight's statement of apology, tapes of the game and of Knight's Feb. 24 television show.