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The IRS uses an algorithm called the _______________________ that pulls historical data for average amount and type of deductions related to income level and predicts the likelihood of underreported income.

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Based on research analysis, the IRS uses an algorithm called the discriminant function that pulls historical data for the average amount and type of deductions related to income level and predicts the likelihood of underreported income.

Discriminant function is a statistical function that specifies the variables that discriminate between two or more inherently occurring groups.

It is also used to classify data based on their features, such as income level.

IRS is the acronym for Internal Revenue Service.

Hence, in this case, it is concluded that the correct answer is "discriminant function."

Learn more about discriminant function here: https://brainly.com/question/5719435

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