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))
Here is the screen shot:

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
Check the link again. It is written above "Lollipop Themed Rom" not real lollipop. That is why it is showing API 16.
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