I haven't yet purchased a hood and will be sure to purchase one that can be vented to the rear (I think most can).

I have checked the stud location in the wall and the area directly behind the middle of the hood is open, i.e., just dry wall, insulation, sheathing and siding.

What's the best way to go?
I'd guess locating the hole on the inside drywall and then running a long drill bit through the wall at the center of the cutout/hole.

Then going outside I can see how this location fits into the clapboard siding. Assuming there are no complexities with the "lay of the clapboard" what is next, cut the hold from the outside using a drill in the corner to start a saber saw? If the hole is round, I am sure it is much larger than any hole drill I have, guess the hole will have to be cut with a "hole" saw of some type.

I'd appreciate all tips.

Depending on your vent kit, it might include a wall jack that will allow you to make a square cut even though the ducting is round. It's similar to a roof jack. It has flanges. With this method, you would have to remove siding.

There are also diffuser types where you carefully cut the siding out to accept it tight to the wall when you have sheathing behind the siding. Ideal when the course of siding at the top of the diffuser runs over the top flange for run off reasons.

Thanks,