Final answer:
Yes, the sentence is an example of a hyperbole, an exaggeration not meant to be taken literally.
Step-by-step explanation:
Yes, the sentence "Larry was such a big baby the disparate parents had to use their sheets for a diaper" is an example of a hyperbole.
A hyperbole is a figure of speech that involves exaggeration for emphasis or dramatic effect. In this sentence, the use of the words "such a big baby" and "had to use their sheets for a diaper" are exaggerated to emphasize how big and needy Larry is.
Hyperboles are commonly used in literature and everyday language to add emphasis, create humor, or make a point more memorable.