The type of star cluster where stars are loosely grouped with varying distances between them is called an open cluster.

Here's why:

* Open clusters are relatively young and have a less dense structure compared to globular clusters.

* Stars in open clusters formed from the same cloud of gas and dust, but their gravitational bonds are weaker, leading to a more dispersed arrangement.

* The stars in open clusters can be spread out over a larger area and have a range of ages and masses.

In contrast, globular clusters are tightly packed, spherical collections of older stars with a much higher density and a more uniform appearance.