 Solution

The invariance property of maximum likelihood estimation givesSince $\hat{\theta }-\theta \sim N(0,{\sigma }_{\theta }^2)$, the ratio $\hat{h}/h$ has a log-normal distribution. Its exact variance isand the lowest-order delta method approximation isFor fixed ${\sigma }_{\mathrm{tot}}$, case (i) has $A={\sigma }_{\mu }^2+{\sigma }_{\mathrm{tot}}^2$, whereas case (ii) has $A={\sigma }_{\mu }^2+{\sigma }_{\mathrm{tot}}^2/K$. Because $K\ge 2$ and $B$ is the same in both cases, independent supernova-level variation in case (ii) gives the smaller fractional variance: averaging reduces it, while a shared galaxy fluctuation does not average away.