Tracking visitors

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Quick question. How do you setup google analytics on your site?? I have an account with google analytics now and I got the html code I am supposed to paste. but where exactly do I paste it?? and do I just keep it exactly how it is?? I tried going to site setting and pasting it in the tracking code box but it didnt work for some reason. Any advice would be helpful thank you.

 
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Shotster