To classify the given partial differential equation (PDE), we need to check the discriminant of the corresponding second-order terms. The general form of a second-order PDE is:
\[
A \frac{\partial^2 u}{\partial x^2} + 2B \frac{\partial^2 u}{\partial x \partial y} + C \frac{\partial^2 u}{\partial y^2} = 0
\]
where \( A \), \( B \), and \( C \) are the coefficients of the second-order derivatives. The classification of the PDE is based on the discriminant:
\[
\Delta = B^2 - AC
\]
- If \( \Delta > 0 \), the PDE is hyperbolic.
- If \( \Delta = 0 \), the PDE is parabolic.
- If \( \Delta < 0 \), the PDE is elliptic.
Now, for the given equation:
\[
A = 1 + x^2,\quad B = x(1 - y^2),\quad C = 1 - y^2
\]
We compute the discriminant:
\[
\Delta = B^2 - AC = \left[x(1 - y^2)\right]^2 - (1 + x^2)(1 - y^2)
\]
Expanding both terms:
\[
\Delta = x^2(1 - y^2)^2 - (1 + x^2)(1 - y^2)
\]
Factor \( (1 - y^2) \) from both terms:
\[
\Delta = (1 - y^2)\left[x^2(1 - y^2) - (1 + x^2)\right]
\]
Now simplify the expression in the parentheses:
\[
x^2(1 - y^2) - (1 + x^2) = x^2 - x^2 y^2 - 1 - x^2 = -1 - x^2 y^2
\]
Thus:
\[
\Delta = (1 - y^2)(-1 - x^2 y^2)
\]
We now examine the sign of this expression. Note that:
- If \( |y| > 1 \), then \( 1 - y^2 < 0 \)
- And \( -1 - x^2 y^2 < 0 \) for all \( x, y \in \mathbb{R} \)
So the product of two negative quantities is positive:
\[
\Delta > 0 \text{ when } |y| > 1
\]
Therefore, the PDE is
hyperbolic in the region \( \{(x, y) \in \mathbb{R}^2 : |y| > 1 \} \).
Final Answer
\[
\boxed{(B) \quad \text{hyperbolic in the region } \{(x, y) \in \mathbb{R}^2 : |y| > 1\}}
\]