When the Midpoint Stops Winning

Two tiny targets of equal radius ε\varepsilon sit on the real line, centred 5 units apart. You throw one dart aimed at μ\mu, and it lands at X∼N(μ,σ2)X \sim N(\mu, \sigma^2). For small ε\varepsilon the chance of hitting a target is proportional to the sum of the Normal density evaluated at the two centres.

Aiming at the midpoint is optimal for large σ\sigma and is not optimal for small σ\sigma. Find the critical value σ∗\sigma^{*} below which the midpoint stops maximising the hit probability.

Answer format: round to 2 decimal places.