STEP FOUR: Adjusting Audio Levels
Look at the clip good_bad_ugly.wav. The top and bottom are very flat. This is a problem. Also, if you just listen to it you can hardly hear the voice clips. The biggest helpful tool in Audacity is looking to see if the levels stay in the green or if they are in the red. It if it is the green you are okay, but if you hit red you need to adjust your levels.
We need to adjust the audio levels. Like many other features in Audacity, this can be done several ways. You can adjust the gain.
Or, you can use the envelope tool. You select it from the row of icons on the top. Next you take your selected clip and squish it down a bit.
I adjusted the gain down to -12 dB and used the envelope tool to push the clip down. Here is how it should look. I also adjusted the clip piehole.wav down to -3 dB.