The Error mainly occurs because Android Studio is unable to locate the JAVA on the system. Another reason could be that you are running a 64-bit Android Studio but have 32-bit Java SDK installed on the System.
In Order to fix the issue, we can refer the following steps to resolve the same.
· Resolution for 32-bit Android Studio
1. Check if the Java is present on the system. To verify it open a command prompt on you system and type java and hit enter. If you receive any such information, it shows that Java is installed on the system. Otherwise we need to install it manually by going to the link
2. Next Step would be going to the system settings and changing the environmental variable. To achieve this open run windows and type sysdm.cpl
3. Once we enter it, following window will appear in result. We then need to click on Advanced.
4. Then In the Advance Menu, Click on Environmental Variables.
5. In order to Add the New Environmental Variable click on New and Inter the Name as Java_Home and Path should be the JDK path on your system. In our case it is C:\Program Files (x86)\Java\jdk1.7.0_11
6. Apply the changes and then start the Android Studio and you should be able to launch it without any issues.
If You want to use a 64-bit Android Studio instead of 32-bit then make sure you have the latest JDK from link and then follow the above steps to get it working.