We study squeezed flucuations of the electromagnetic field in the N-photon sectors of the photon Hilbert space. For each N sector, a truncated boson algebra of photon operators is constructed in an embedded N+1 sector. An explicit construction of quantum states of light leading to maximum noise reduction is presented. An analytic expression for the minimum variance of squeezed fluctuations and the corresponding photon statistics are derived in the arbitrary N sector. A very accurate, approximate formula for the minimum variance is also given.
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Figurny et al. (1993) studied this question.
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