Me too had the same problem as shown below.
To resolve the issue, below lines are added to dependencies
section in the app level build.gradle.
compile 'junit:junit:4.12'
androidTestCompile 'com.android.support.test:runner:0.5'
Gradle build then reported following warning.
Warning:Conflict with dependency 'com.android.support:support-annotations'.
Resolved versions for app (25.1.0) and test app (23.1.1) differ.
See http://g.co/androidstudio/app-test-app-conflict for details.
To solve this warning, following section is added to the app level build.gradle.
configurations.all {
resolutionStrategy {
force 'com.android.support:support-annotations:23.1.1'
}
}