Other than that, you can use oversampling to gain more SNR, but that requires increasing Fs beyond nyquist.
Ultimately the real point is: the dynamic range of our ears is defined as the difference between the loudest (ear-damage level) sound and the quietest sound *we can perceive*. Since *we can perceive* a sound encoded at <-96dB in 16bit PCM, that is *not* the dynamic range.
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Remember the absolute threshold of hearing is defined for a *pure tone*, not broadband noise! It would be way higher for broadband white noise.
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I just did a little test, and I can perceive a pure tone at 800Hz at about -30dB relative to white noise. That means the dynamic range of a 16-bit PCM signal should be somewhere around 96+30 = 126dB. Shaped dither would improve this further.
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