Obviously I need the correct import statment to solve this problem. According to the docs for AndroidJUnit4, this should be
import android.support.test.runn
Ok so here is your mistake and mine!
If we are going to write a pice of code for Local Unit Testing we shouldn't use @RunWith(AndroidJUnit4.class) cause we do not use AndroidJUnit4 but we need Junit4. so we should write @RunWith(JUnit4.class). And of course your java test file is under app/src/test/java/your.package.name directory.
Else if (!!) we want to write some Android Instrumented Unit Test we should put our test java files in app/src/androidTest/java/your.package.name directory and use annotation like @RunWith(AndroidJUnit4.class)