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How to correctly convert a 24bit master to 16bit?

Hi all,
I've been lurking around here a lot, but now have a question of my own. With a recent project, I decided to mixdown to 24bit/44khz, instead of 16bit/44Khz which is what I have done in the past. After mastering the audio, I was puzzled by this sharp harsh sounding noise i'd get when playing back the file and boosting around the 16khz area.

bitrates and sampling rates

I understand the theory behind bitrates and sampling rates, and I understand that they are correlated to resolution... but what are the benefits/downfalls from using higher/lower bitrates and sampling rates? In certain applications is it better to lower/raise them, or is it just always go for the highest number? Is it just to make smaller files?

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