Abstract
We optimize the signal-to-noise ratio of a Mach-Zehnder atom interferometer with Gaussian squeezed input states, in the presence interactions. For weak interactions, our results coincide with Phys. Rev. Lett. {\bf 100}, 250406 (2008), with optimal initial number-variance and optimal signal-to-noise ratio for total atom number . As the interaction strength increases past unity, phase-diffusion becomes dominant, leading to a transition in the optimal squeezing from initial number-squeezing to initial {\it phase}-squeezing with and shot-noise scaling. The initial phase-squeezing translates into hold-time number-squeezing, which is less sensitive to interactions than coherent states and improves by a factor of .
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