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A Michelson-type interferometer with two-mode squeezed coherent state inputis considered. Such an interferometer has a better phase sensitivity over theshot-noise limit by a factor of $e^{2r}$, where $r$ is the squeezing parameter[Phys. Rev. A 102,022614 (2020)]. We show that when photon loss and noise inthe two arms is asymmetric an optimal choice of the squeezing angle can allowimprovement in phase sensitivity without any increase in input or pump power.In particular, when loss occurs only in one arm of the interferometer, we canhave improvement in phase sensitivity for photon loss up to 80\%. Hence, asignificant improvement can be made in several applications such as LiDAR,gyroscopes and measuring refractive indices of highly absorptive/reflectivematerials.

Optimizing the phase sensitivity of a Michelson interferometer with a two mode squeezed coherent input