Welcome to LQ. Please note that your thread title is a poor choice.
Dummynet appears very old. Most references I see to it date back a few years.
Most references say that you need to compile the kernel or a module to get dummynet installed.
First thing is to consider where you downloaded the tgz file from. Were there instructions on that site? When you extracted that tgz file, is there a readme or other text file to give you instructions?
Here's an example from CentOS, but long ago,
http://xmodulo.com/how-to-install-du...on-centos.html
Note also that on Ubuntu 14.04 a synaptic package manager cache search does not find dummynet, nor does Ubuntu Software Center. So this is either a very obtuse package, or one which is very old. I'm going with very old and out of date. I'd also expect some problems with that because the Linux kernel changes and hence the integration of older network driver sources may not jive well at all with a more current kernel.
