Citing a short story within a collection within another collection
How formal your citation must be depends on your audience. Course paper? Thesis? Article for a literary journal?
That citation will allow your reader to find and verify what you have to say.
If what you're writing is scholarly, you might want to find the original publication date, and put (reprinted) in the citation. If it's really scholarly you might have to look at the original somehow.
By the way, the text is available at Project Gutenberg. Adding that url will help your readers even if it's not an official source:
https://www.gutenberg.org/files/2814/2814-h/2814-h.htm