Step 1: Understand what CIDR stands for. CIDR means Classless Inter-Domain Routing.
Step 2: Recognize that CIDR notation is a way to represent IP addresses and their associated subnet masks.
Step 3: The '/16' in CIDR notation indicates how many bits are used for the network part of the address.
Step 4: In this case, '/16' means that the first 16 bits of the IP address are used for the network.
Step 5: The remaining bits (32 total bits in an IPv4 address - 16 bits for the network = 16 bits for hosts) can be used for individual devices (hosts) on that network.
Step 6: A subnet mask of /16 corresponds to 255.255.0.0, which is used to separate the network part from the host part of the IP address.
Step 7: With a /16 subnet mask, there are 2^16 (or 65,536) possible addresses available in that network.