After updating my android phone version from 4.1.2 (API 16) to 5.0.2 (API 21) my device API level is still remaining at 16 while the version is 5.0.2. Below text is shown when trying to run an application inside Android Studio:
Samsung GT-S7262 (Android 5.0.2, API 16) (minSdk(API 21) > deviceSdk(API 16))
I used the following link instructions to update my android device:
http://forum.xda-developers.com/galaxy-star/general/lollipop-gt-s7262-samsung-galaxy-star-t3140853