Android Studio - Failure [INSTALL_FAILED_OLDER_SDK]

Problem Description:

When trying to install a newly created app the error appears in Run window and the app fails to install.

Failure [INSTALL_FAILED_OLDER_SDK]

Additional info:

This bug occurs when styles.xml contain:

<style name="AppTheme" parent="Theme.AppCompat.Light">

Fix:

Open build.gradle

Change from:

android {
    compileSdkVersion 'android-L'
    buildToolsVersion "20.0.0"

Change to:

    compileSdkVersion 20
    buildToolsVersion "20.0.0"

Re-run the project and it will work OK.