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Regression: graph conclusion watch

1. What can be concluded from this graph?
2. (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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Updated: February 26, 2016
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