I found this solution but I cant figure out how it works. Please show the step by step how to acquire these answers.

Consider a 16-bit floating-point representation based on the IEEE floating-point format, with one sign bit, seven exponent bits (k=7), and eight fraction bits (n:8). The exponent bias is 27-1-1-63. Fill in the table that follows for each of the numbers given, with the following instructions for each column: Hex: the four hexadecimal digits describing the encoded form. M the value of the significand. This should be a number of the form x or x/y, where x is an integer and y is an integral power of 2. Examples include: 0, 67/64, and 1/256. E: the integer value of the exponent. V: th numeric value represented. Use the notation x or x *2', where x and z are integers As an example, to represent the number 7/8, we would have s-0, M = 7/4 and E =-1. Our number would therefore have an exponent field of 0x3E (decimal value 63-1 62) and a significand field 0xCO (binary 110000002) giving a hex representation of 3ECO. You need not fill in entries marked"*