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The Year 3 forecast is calculated by applying the exponential smoothing formula to the Year 2 actual demand and the Year 2 forecast. The actual demand of 365 is weighted by $\alpha=0.4$, and the previous forecast of 310 is weighted by $(1-\alpha)=0.6$, yielding a new forecast of 332.

Conditions: The smoothing constant $\alpha$ is 0.4.; The actual demand for Year 2 ($A_2$) is 365.; The forecast for Year 2 ($F_2$) is 310.

The Year 3 forecast is calculated by applying the exponential smoothing formula to the Year 2 actual demand and the Year 2 forecast. The actual demand of 365 is weighted by $\alpha=0.4$, and the previous forecast of 310 is weighted by $(1-\alpha)=0.6$, yielding a new forecast of 332.

Conditions: The smoothing constant $\alpha$ is 0.4.; The actual demand for Year 2 ($A_2$) is 365.; The forecast for Year 2 ($F_2$) is 310.