Incorrect. Use the quotient property, $\displaystyle{\log}_{{b}}\frac{{M}}{{N}}={\log}_{{b}}{M}-{\log}_{{b}}{N}\usepackage{cmbright}\Huge\$ , to rewrite.

$\displaystyle{\log}_{{{4}}}{\left(\frac{{y}}{{16}}\right)}={\log}_{{{4}}}{y}-{\log}_{{{4}}}{16}\usepackage{cmbright}\Huge\$

Then use the definition of logarithm to simplify $\displaystyle{\log}_{{4}}{16}\usepackage{cmbright}\Huge\$ . The correct answer is 2.