I assume that you did not do the configuration first, since the default configuration is not suitable for this project.
Select Change Configurations next to the Run button on the toolbar.
Make a test configuration by pressing the + button and select Test for Android .
Make sure you select "Show selection dialog" in the target device section if you are using Virtual devise, such as Genymotion
Click OK and click the Run button.
PS. Make sure your configuration is in Android Test and nothing is displayed in the JUnit drop-down list.
At first I was confused, but no more than that, after I tried to take steps from the Udacity notes.
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