How does bit depth impact an audio signal?

Bit depth is a crucial parameter in digital audio that directly influences the dynamic range of an audio signal. Dynamic range refers to the difference between the quietest and loudest parts of a sound that can be accurately represented. A higher bit depth allows for a greater number of possible amplitude levels, resulting in finer resolution for audio signals. For instance, a bit depth of 16 bits can represent 65,536 discrete levels, while a 24-bit depth can represent over 16 million levels. This increased resolution facilitates more detailed and nuanced audio recordings, which helps in capturing soft sounds without distortion, as well as providing headroom for louder sounds. Therefore, bit depth significantly impacts the fidelity and quality of the audio signal by allowing a broader dynamic range.