  We investigate the sensitivity of individual LIGO/VIRGO-like interferometers
and the precision with which they can determine the characteristics of an
inspiralling binary system. Since the two interferometers of the LIGO detector
share nearly the same orientation, their joint sensitivity is similar to that
of a single, more sensitive interferometer. We express our results for a single
interferometer of both initial and advanced LIGO design, and also for the LIGO
detector in the limit that its two interferometers share exactly the same
orientation. We approximate the evolution of a binary system as driven
exclusively by leading order quadrupole gravitational radiation. To assess the
sensitivity, we calculate the rate at which sources are expected to be
observed, the range to which they are observable, and the precision with which
characteristic quantities describing the observed binary system can be
determined. Assuming a conservative rate density for coalescing neutron star
binary systems we expect that the advanced LIGO detector will observe
approximately 69~yr${}^{-1}$ with an amplitude SNR greater than 8. Of these,
approximately 7~yr${}^{-1}$ will be from binaries at distances greater than
950~Mpc. We explore the sensitivity of these results to a tunable parameter in
the interferometer design (the recycling frequency). The optimum choice of the
parameter is dependent on the goal of the observations, e.g., maximizing the
rate of detections or maximizing the precision of measurement. We determine the
optimum parameter values for these two cases.
