If we call the letters A, B, C and D, let's say that the correct envolope placement is represented by the right order. so if all letters are placed correctly, we'll have ABCD. However, if only A is placed correctly we'll have one of the following 2 possibilities:
ACDB or
ADBC
In fact, for each correctly placed letter, there are only 2 ways to incorrectly place the other three. For instance if only letter B were placed correctly we would have the following 2 possibilities: D
BAC or C
BDA.
Because this operation can be repeated with anyone of the 4 letters, there are a total of 2*4=8 ways to have only 1 letter placed correctly.
The total number of ways possible of arranging the 4 letters is simply 4!=24, so there are 24 ways to arrange the letters, but 8 of these ways will have 1 correct placement and 3 incorrect placements. The probability therefore that there is only1 letter in the correct place is 8/24 = 1/3
TAKE-AWAY: When a combinatorics question asks you to deal with a small set of possibilities, if you're not sure which formula to use or how to use it, you can actually map out possibilities.
If you have trouble understanding this, you can watch a video solution at
GMATPrep question 1071
-Patrick