Original post by Bruce Harrisface
What can be concluded from this graph?
At first sight, the data appear to be consistent with there being a linear relationship between outcome and explanatory variable. Moreover, there do not appear to be any screamingly obvious deviations from the assumptions underlying linear regression.
However, before proceeding to inference, I would be checking, at the very least, a plot of residuals versus fitted values, a quantile-quantile plot of the residuals, and the linear corelations between residuals. There may be a slight suspicion that the residuals are "tail light" compared to the normal distribution - if the qq-plot reveals this, try bootstrapping the regression to see whether inference changes. (I doubt that it will much).
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