My build keeps failing and I am not able to run a hello world app in the console or with the AVD.
Also, I'm not sure how you would setup the JUnit testing with Android Studio
I have JDK 1.8 installed
But, This is what happens in Android Studio
You can use Ctrl + Alt + Shift + S for Windows/Linux to pull up the "Project Structure" dialog. In there, you can set the JDK location as well as the Android SDK location.
Ctrl + Alt + Shift + S
To get your JDK location, run /usr/libexec/java_home -v 1.8 in terminal
/usr/libexec/java_home -v 1.8