The maximum-likelihood estimators are the success proportions
The invariance property of maximum likelihood estimation therefore gives
The invariance property of maximum likelihood estimation gives
Since , the ratio has a log-normal distribution. Its exact variance is
and the lowest-order delta method approximation is
For fixed , case (i) has , whereas case (ii) has . Because and 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.