Final answer:
The second thesis statement is the most suitable for a literary analysis of 'The Monkey's Paw' focusing on allusion and dialogue, as it addresses both elements and their contributions to the narrative.
Step-by-step explanation:
When analyzing the thesis statements for a literary analysis essay focusing on allusion and dialogue in W.W. Jacobs' "The Monkey's Paw," the second thesis statement is the most appropriate choice. It states, "The author alludes to well-known texts, such as the Bible, to enhance meaning and also uses dialogue to develop character." This statement effectively encompasses the two literary elements allusion and dialogue, signaling to the reader what facets of the narrative will be explored in the essay. Additionally, it provides a clear direction for the analysis by indicating that the allusions will be examined for how they contribute to the narrative's meaning and that the dialogue will be analyzed in the context of character development.