Mega and Randy;
You guys are both kind-of right. Neither of you is properly explaining what happens to light in our tanks, however.
Randy is right about the inverse square law. It has nothing to do with reflection, refraction, and transmission medium. It has everything to do with the dispersal of photons as a lightwave spreads over a surface area. His explanation is accurate. Focused beams have a different intensity loss curve over distance.
However, what goes on under the hood is much too complex for the inverse square law to be of much use. For one, there are lots of reflective surfaces such as the reflector, obviously, but also the insides of the hood, the surface of the water, the inside surface of the glass or acrylic in the tank, the rock, the sand, and many more. The reflector is more efficient, most other surfaces less so. Some of the light is reflected, some lost to heat, some escapes the tank, and so on. Second, the water itself has great filtering/refracting abilities depending upon its color, clarity, etc.
The bottom line is that in any given tank, the PAR at a particular depth is extremely dependant upon your particular tank details. The loss of intensity in most tanks is pretty drastic with increasing depth, but not simply because of the predictions of the inverse square law. It may be better or worse. Lowering the lights will increase intensity, generally, but not in any mathematically predictable way. Salt creep on the buld will drop it hugely, heat may be a problem, and so on.
Mega, go ahead and buy that PAR meter. The results should be real useful to you, but unfortunately, not to anyone else unless you start loaning it out.
-Jim