Could you explain what the focus of mediation analysis is?

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thank you!

Mediation focuses on the mechanism (mediator) by which one variable affects another. Let’s say previous studies have suggested that higher grades predict higher happiness: X (grades) → Y (happiness). I think, however, grades are not the direct reason that happiness increases. In this case, exploring the process how increase in grades causes the improvement in happiness is the focus. I hypothesize that good grades boost one’s self-esteem and then high self-esteem boosts one’s happiness: X (grades) → M (self-esteem) → Y (happiness). Self-esteem is a mediator that explains the underlying mechanism of the relationship between grades (IV) and happiness (DV).