Parameter estimation of inspiralling compact binaries using 3.5 post-Newtonian gravitational wave phasing: The non-spinning case

(Abridged) We revisit the problem of parameter estimation of gravitational-wave chirp signals from inspiralling non-spinning compact binaries in the light of the recent extension of the post-Newtonian (PN) phasing formula to order $(v/c)^7$ beyond the leading Newtonian order. We study in detail the implications of higher post-Newtonian orders from 1PN up to 3.5PN in steps of 0.5PN ($\sim v/c$), and examine their convergence. In both initial and advanced detectors the estimation of the chirp mass (${\cal M}$) and symmetric mass ratio ($\eta$) improve at higher PN orders but oscillate with every half-a-PN order. We compare parameter estimation in different detectors and assess their relative performance in two different ways: at a {\it fixed SNR,} with the aim of understanding how the bandwidth improves parameter estimation, and for a {\it fixed source}, to gauge the importance of sensitivity. Errors in parameter estimation at a fixed SNR are smaller for VIRGO than for both initial and advanced LIGO. However, for sources at a fixed distance it is advanced LIGO that achieves the lowest errors owing to its greater sensitivity. Finally, we compute the amplitude corrections due to the `frequency-sweep' in the Fourier domain representation of the waveform within the stationary phase approximation and discuss its implication on parameter estimation.