There will be 3 cases to consider for the above problem, out of which the following will be one of them:
2 different and 2 alike letters are chosen. Now, we have 3 sets of alike letters, namely ${(M,M)}, (A,A), (T,T)$. So we choose any one of them in $\binom{3}{1}$ ways and out of the remaining 7 different letters, we choose 2 letters in $\binom{7}{2}$ ways and arrange the 4 selected letters in $\frac{4!}{2!}$ ways. Therefore, total ways = $\binom{3}{1} * \binom{7}{2} * \frac{4!}{2!}$.
However, I cannot understand what is wrong if we arrange the alike letters in $\frac{2!}{2!}$ ways and the different letters in $2!$ ways instead of arranging the whole 4 letters? Total no. of ways in this case is $\binom{3}{1} * \frac{2!}{2!} * \binom{7}{2} * 2!$
Which are the cases that are being left if we arranged them individually instead of taking the entire word?