The use of the Mahalanobis distance in a lookup table approach to retrieval of in-water Inherent Optical Properties (IOPs) led to significant improvements in the accuracy of the retrieved IOPs, as high as 50% in some cases, with an average improvement of 20% over a wide range of case II waters. Previous studies have shown that inherent noise in hyperspectral data can cause significant errors in the retrieved IOPs. For LUT-based retrievals that rely on spectrum matching, the particular metric used for spectral comparisons has a significant effect on the accuracy of the results, especially in the presence of noise in the data. In this study, we have compared the Euclidean distance and the Mahalanobis distance as metrics for spectral comparison. In addition to providing justification for the preference of the Mahalanobis Distance over the Euclidean Distance, we have also included a statistical description of noisy hyperspectral data.